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Global Economy and Business
MOBILITY AND MIGRATION
• Prof.ssa Luisa Natale
• http://www.docente.unicas.it/luisa_natale/
• Email [email protected]
MOBILITY AND MIGRATION
• THEORIES AND
INTERNATIONAL MIGRATION
THEORIES
1. The Economic approach
2. The Sociological approach
3. The mobility transition
4. The Contribution of political
science
1. The economic approach
“The migration of workers is caused by
differences in the supply of and
demand for labour in different
locations” (A. Smith)
An Inquiry into the Nature and Causes of the
Wealth of Nations), 1776
The economic approach
1. The Neoclassical Theory of migration
2. The New Economic of Migration
3. Family Migration and Selectivity of
Migration
4. The Dual Labour Market Theory
5. The World System Theory
1. The Neoclassical Theory of
Migration
Main proponent: Hicks (1932)
The existence of wage differential
across the space is the main
cause of immigration
1. The Neoclassical Theory of migration
Main proponent: Harris-Todaro (1976)
• Level of analysis: macro
• Type of migration: internal or international labour
migration
• These studies argue that migrants make a rational
decision by moving in the direction where they are
expected to get the highest benefits
• As a result of that movements, the supply of labour
decreases and wages rise in the countries of origin, the
supply of labour increases and wages fall in the
countries of destination, leading eventually to a new
equilibrium. At that point international migration ceases
1. The Neoclassical Theory of migration
(to be continued)
• Micro counterpart
• Migrant is a racional actor and decides to
migrates on the basis of cost-benefit calculations
• People move to wherever their skill can be more
productive. They must invest in their migration
wich involves tangibile and intangibile costs
(cost of travel, of research of job, of adaptation
to a new enviroment)
Net returns (NT)
• NT are estimated as the difference between
expected earnings in the country of
destination and expected earnings in the
country of origin
• The subtraction of estimated costs leads to
a measure of the expected gains from
migration
Expected earnings in the country of
destination
Expected earnings in the country of
destination estimated on the basis of an
individual’s skills multiplied by the
probability that individual gets a job at
destination
Expected earnings in the country of
origin
Expected earnings in the country of
origin estimated on the basis of an
individual’s skills multiplied by the
probability that individual gets a job at
country of origin
Limitations
• This theory does not take into account the
international political and economic
environment, as well as the effects of state level
economic and political decisions that influence
individual decision regarding migration
(Papademetriou and Martin 1991).
• There is homogeneity of skills between area of
origin and area of destination. The labour is
completely interchangeable. It’s true?
• Level of analysis: macro
• Unit of analysis: country
2. The New Economics of Migration
Main proponent: Stark and Taylor (1989)
• This theory assumes that people act, within
households or families, to maximize expected
income and to minimize risks by diversifying the
allocation of family labour
• Households diversify risks
• Remittances can also help the community of
origin
2. The New Economic of Migration (to be
continued
• Migration is considered to be
particularly important in
developing countries where capital
markets are week, many people do
not have access to banking services
2. The New Economic of Migration (to be
continued
• Household send family members to
work abroad
• to improve income in absolute terms
• to increase income relative to others
households in a reference group
2. The New Economics of Migration (to be
continued
• If in a community the income of
aflluent households increases, whereas
that of poor households remains
unchanged the relative deprivation of
the latter increases and their incentive
to partecipate in international
migration rises as well, even if no
change in expected wages takes place.
2. The New Economics of Migration
• Limitations:
• The studies available focus on the experience of
just a handful of rural communities, which are
not selected to be representative of the whole
population
• Level of analisys: micro
• Unit of analysis: family
3. Family Migration and Selectivity of
Migration
Main proponent: Mincer (1978)
• Movements of complete family.
• Difference between the individual’s and the couple’s optimal
strategy depends on the degree of correlation in the gains from
migration of the husband and wife. When there is perfect
correlation do the optimal strategies of the individual and the
married couple coincide.
–
• Level of analysis :micro
• Unit of analysis : family/couple
3. Family Migration and Selectivity
of Migration
• If income inequality is greater at place of
destination,
• “People with higher than average skills have an
incentive to migrate because they can earn a
higher relative wage in area of destination”.
• If income inequality is greater at place of origin,
such person have less incentive to migrate than
those with lower skill
. Family Migration and Selectivity of
Migration
• When married couples are considered,
the selectivity effects weakens because
some low-skilled who would not have
migrated on their own to a place with a
high level of income inequality may do
so if they are married to skilled person
“… migration is the result of rational
choices made by individual or family”
According to :
• The neoclassic economic theory of migration
• The new economics of migration
4. The Dual Labor Market Theory
Main proponent: Piore (1979)
• International migration is mainly the product of
international force that transcend individual choice and
set constraints on it.
• International migration results from a permanent
demand of foreign labour that is inherent to the
economic structure of developed countries
• Structural constraints at destination reduce social
mobility
• Level of analysis: macro
• Unit of analysis: country
4. The Dual Labor Market Theory
Main proponent: Piore (1979)
• Several factors contribute to
create structural demand for
foreign workers
4. The Dual Labor Market Theory
Main proponent: Piore (1979)
• A) Wages not only reflect condition of supply and
demand.
• They also confer status and prestige. Consequently to
preserve an established occupational hierarchy, wages
cannot simply respond freely to changes in the supply
of workers.
• Employers seeking to attract unskilled workers cannot
for jobs at the botton of hierarchy cannot simply raise
wages because by so doing they would change the
defined relationships between status and reminaration
• The cheaper solution the importation of foreign
workers to work for low wages.
•
4. The Dual Labor Market Theory
Main proponent: Piore (1979)
• B) Wages not only reflect condition of supply
and demand, Foreign workers from low income
countries are usually willing to satisfy that need
because even a low wage in developed country
can be several time greater than the average
wage in developing country
4. The Dual Labor Market Theory
Main proponent: Piore (1979)
• Coexistence of a capital intensive primary sector
and of a labour intensive secondary sector.
Segmented labour market. Workers in second
and or in low-productivity be laid off at any
time. They became the means of adjustment
during cyclical downturns. Experience of labour
importing countries of Europe during the late
1950s and 1960s through official recruitment
programs. Ethnic enclaves
Migration theories and the
role of demographic factors
• One exception: the dual labour market
theory (Piore 1979, Massey et al. 1993)
emphasis on the socio-demographic
dynamics of the labour force as a factor
shaping demand for migrant labour
supply in the ‘secondary’ labour market
provided by specific socio-demographic
groups: women (before marriage or first
birth), teenagers and rural-urban migrants
5. The World System Theory
Main proponent: Wallerstein (1970/80)
World-system refers to the international
division of labor, which divides the world
into
core countries,
semi-periphery countries
periphery countries.
5. The World System Theory
The core
The Core is the place where resources
and wealth masses. The Core has high
technological development and it
creates complex technological
products
• Core countries focus on higher skill,
capital-intensive production
,
The core
• Europe gained control over most of the world
economy, presiding over the development and
spread of industrialization and capitalist
economy, indirectly resulting in unequal
development
• Demand for cheap labor arises (agricolture,
service base, etc.)
The core
Unites States and Europe gained control over
most of the world economy, presiding over the
development and spread of industrialization and
capitalist economy, indirectly resulting in
unequal development
2012
The Periphery
• The source of cheap labour, raw
minerals and agricultural products that
serve the Core.
• focuses on low-skill, labor-intensive
production and extraction of raw
materials
From the Periphery to the Core
• In the peripheral countries, the
commercialization of agricultural
production leads to land consolidation, the
substitution of cash crops for staples
• Mechanization of agricultural reduces the
labour demand
• Rural-urban migration in peripheral area
From the Periphery (PA) to the Core
Growing urban labour force in PA difficult to
absorb
↓
Rise in unemployment/underemployment
↓
Marginalisation of many families →
Unmet labour demand in Core →
PA → Core international migration
2. The Sociological approach
Main proponent: Lee
• Conceptual approaches in migration research
include push and pull factors as determinants to
explain contemporary migrations.
• Both areas of origin and destination are
characterized by sets of positive factors (pull
factors), or forces of attraction, and negative
factors (push factors), or forces of repulsion
Push factors (1)
caused by a variety of reasons:
• economic causes – income inequality
between developing and developed
countries • demographic causes - Population
pressure in area leads to out migration
• political changes, for example the collapse
Berlin’s Wall (1989)
Push factors (2)
• geographical causes as proximity,
migration is an inverse function of
distance;
• evaluation of place utilities and disutilities
plays an important role in migration
decision
Macro explanations
1. Push/Pull factors
–
–
Demographic imbalances
Economics imbalances
Political factors
In the origin country
Sustained demographic
growth
High pressure
towards emigration
high potential labour supply
Unemployment,
underemployment, low lyfe style
42
• Diagram 1
Diagram 1
Pull factors
caused by a variety of reasons:
• Segmented Demand labour market – low
skilled
• Migratory chain, Family riunification
• Weak immigration law system (no
boundaries control)
Economic reasons
Income inequality
between developed
countries and
developing
countries
Black market
Migratory chaine,
Family riunification
Demographic reasons
Population pressure
in area leads to out
migration
Political change
Asylum seeking
Push
factors
Contemporary
Migration
Pull
factors
Segmented
Demand labour
market – low skilled
The collapse Berlin’s
Wall, 1989
Geographical proximity
Weak immigration
law system
Some lessons from the literature
• There is limited theoretical understanding and
empirical evidence of the impact of demographic
trends on migration. Emphasis on demography
as a ‘push’ factor
• Demographic ‘pull’ forces have been particularly
neglected
• A demographic gap is neither necessary nor
sufficient for migration to take place
• The socio-demographic composition of the
workforce matters more than overall numbers
Network approach
• Network connections can be considered
as a form of social capital that people can
draw to gain information, material or
psychological support
• to facilitate migration and the adaption
process.
• Level of analysis: micro
• Unit of analysis: individual
Is there any correspondance between labour
workforce demand countries and attractives
immigration countries?
48
• Attractive countries: politically stable,
high quality of life
• Countries with high attractiveness
doesn’t necessary correspond to
countries with high migrants need
• Countries with high migrants need,
but Japan, are in Europe
51
3. The mobility transition
• See chapter Theories 3.a
Mobility Transition Model
↑ ↓
Demographic Transition
Model
4.The systems approach (Kritz,1992)
WORK OF THE INTERNATIONAL UNION FOR THE SCIENTIFIC STUDIES OF
POPULATION (IUSSP), 1992
PREMISES
A ) MIGRATION CREATES A UNIFIED SPACE, ENCOMPASSING PLACES OF
ORIGIN AND PLACES OF ARRIVAL
B) MIGRATION IS NOT THE ONLY PROCESS LINKING AREAS OF ORIGIN AND
DESTINATION AND IS CLOSELY ASSOCIATED WITH OTHER PROCESS,
OFTEN OF LONG HISTORICAL GESTATION (ECONOMIC, CULTURAL…
LINKAGES)
C) THIS PROCESS MODIFY THE CONDITIONS IN BOTH AREAS GIVING RISE
TO FEEDBACK MECHANISMS TO TRASFORM THE INITIAL PROCESSES
(CHANGES IN MAGNITUDE AND CHARACTERISTICS)
4.The systems approach (Kritz,1992)
OTHER PREMISES…
D) STATES PLAYS A CRUCIAL ROLE IN DETERMINING
INTERNATIONAL MIGRATION FLOWS
E) IT IS NECESSARY TO IDENTIFY THE MECHANISMS THAT
INFLUENCE THE INDIVIDUAL CHOICES (MIGRANT
NETWORKS)
4.The systems approach (Kritz,1992)
A GROUP OF COUNTRIES MAY BE CONSIDERED AS A
SYSTEM WHEN THEY ...
A) … CAN BE IDENTIFIED AS ATTRACTION POLES FOR
MIGRANTS OR AS SOURCES OF MIGRANTS
B) … THE MIGRATION FLOWS CONVERGING TO COUNTRIES
OF DESTINATION SHOULD SHOW CONSIDERABLE OVERLAP
IN TERMS OF THE COUNTRIES OF ORIGIN INVOLVED
C) … SAME LEVEL OF DEVELOPMENT, HIGH DEGREE OF
CULTURAL AFFINITY
D) … COHERENCE IN THE POLICIES
4.The systems approach (Kritz,1992)
THE DEFINITION
“THE CONCEPTUALIZATION OF A MIGRATION
SYSTEM AS A NETWORK OF COUNTRIES LINKED
BY MIGRATION INTERACTIONS WHOSE
DYNAMICS ARE LARGELY SHAPED BY THE
FUNCTIONING OF A VARIETY OF NETWORKS
LINKING MIGRATION ACTORS AT DIFFERENT
LEVEL OF AGGREGATIONS”