The poorest have the most to gain from moving but they also move less Poverty

The poorest have the most to gain from moving but

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The poorest have the most to gain from moving… but they also move less Poverty as a constraint to migration --> cost of moving is often high Triggers & later deterrents Triggers of migration Economic development o Raises wages, provides resources for financing migration Prior Migration Previous migrants function as a "migration" bank Deterrents Economic development o Raises wages, increases incentives to stay
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Micro-Economic Theories Neo-Classic Micro-Economics ER(0) = P1 = probability of not being deported P2 = probability of employment in Destination P3 = probability of employment in Origin Y = wages C = cost of moving How can social networks change this equation? Easier to find a job No need to pay for rent nor food if friends or family available Citizenship easier to get when family lives in destination Have company among people you know (no psychic cost of moving) Examples for Costs? Physical costs of migration Plane, Boat etc. ticket Cost of crossing border (Visa, Intermediaries, Smugglers) Psychic/social costs (“compensating differential”) Two Economic Models: Neo-classic micro econ Focus on individual motivations Balance of long-term earning potentials Nelm (new economics of labor migration) Household is a key actor Migrant maximizes resources for household Wage differential may not be key but consistency of earning stream What are different implications of these models for what happens after migration? Forced Migration
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Migration is forced --> decision making framework can’t fit or will have to consider very different factors Refugee: person outside country because of fear of persecution: race, religion, nationality, political opinion Characteristics of refugee flows: large-scale, sudden, not selective E.g. syrian migration Segmented Labor Market Theory --> Segmented labor markets Migration is due to pull factors rather than push factors Unattractive jobs for native population are the ones given to immigrants Idea of dual or segmented labor markets Different labor markets Primary sector o Well paid, stable jobs o Opportunities to move up the hierarchy Secondary sector o Poorly paid, unstable jobs o Few mobility opportunities Hard to move from one to another Segmentation reduces competition across sectors o Workers in better segment may benefit from existence of less desirable segment Bad Jobs Low prestige, seen as degrading, bottom of the totem pole Skill minimal/modest Few mobility/ opportunities Little stability o Seasonal: agriculture o Cyclical: construction o Conditions harsh ->Native workers fall out of the labor supply Segmentation is here to stay Chronic nature of demand for immigrant labor o Prestige differences Can't be eliminated: as long as there is hierarchy, jobs will defer in prestige and attractiveness Wage differences o Can be eliminated, but with inflationary effects Increasing wages for bottom most workers leads to increases for workers at next level up Ripples throughout economy Differences in stability o Increases costs of lay-offs, fires
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  • Fall '19
  • Human migration

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