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Lecture 7 - 03:14 NorthAmerica ,ArgentinaBrazil

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03:14 The Theory- why people move and how migrants are “selected”  3 percent of the world population moves between countries each year 62 million moved from south to north- Latin America  North America 61 million moved from south to south- Peru   Chile, Argentina   Brazil  53 million moved from north to north- US  Canada, Eastern   Western Europe 14 million moved from north to south- return migrants going back to origin communities,  elderly (retirement)  Theories of migration: why do people move? Push- sending community Pull- receiving community  Conditional on leaving, where is it that you’re going to go Macro-level economic theory: bigger picture, go where you will make more money Populations will shift spatially in response to wage differentials between regions Does not think about the individual; thinks about populations  In the US, high school education has a greater wage associated with it than does a high  school education Mexico. So you will see population movement that the labor supply in  Mexico dwindles so that the wages in Mexico will go up Simple supply and demand Micro-level economic theory: looking at individual The individual evaluates
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1. The costs and benefits of living in one region 2. The costs and benefits of living in another 3. The costs and benefits of migration itself The individual will move when the benefits exceed the costs  Consider the cost of time If you can enumerate the costs and benefits, you can predict when someone would stay  and when someone would go  If you can do in all possible locations, you can predict location of that move *The costs include everything that you are giving up  *Time is a cost  This theory has received criticism Unstated assumptions We’re assuming that people pick the most logical choice We’re making predictions based on wages and educations, and excluding social aspects  We don’t know the weight placed on a cost for an individual We have imperfect information: not all migrants know everything about all possible 
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