Question

4) Describe the motivation for the migration of labor

5) Identify the winners and losers that result from labor migration. How does this relate to the Factor Endowment Trade Model?

Answer 1

4. Motivation for the migration of labour:

Motives for migration should play a major role in the development of achievement motivation of migrants, which, in turn, should influence economic success. For a sample of guest-workers in Austria, it is shown that family or political motives, does not yield convincing results for the explanation of wages. Economic motivation has to be further differentiated into ‘search for success’ and ‘fear of failure’ types. Immigrants with optimistic economic motivation are able to command wages more than 10% higher than individuals migrating for political reasons.

Question No (5):- The problem of underemployment in the rural sector has been a major focus of discrimination in the economic analysis of less developed countries. But the subject of urban unemployment has been reliving neglected. In modern economics, people are coming from rural to urban sector search of work. If they fail to find a suitable job they remain unemployment by accepting low wage job or even remain unemployment without returning back to their home.