1. Global Economy and Business MOBILITY AND MIGRATION
Prof.ssa Luisa Natale

2. MOBILITY AND MIGRATION
THEORIES AND INTERNATIONAL MIGRATION

3. THEORIES 1. The Economic approach 2. The Sociological approach
3. The mobility transition
4. The Contribution of political science

4. 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)

5. An Inquiry into the Nature and Causes of the Wealth of Nations), 1776

6. 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

7. The Neoclassical Theory of Migration Main proponent: Hicks (1932)
The existence of wage differential across the space is the main cause of immigration

8. Level of analysis: macro
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

9. 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)

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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.

18. 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

19. 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

20. 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

21. . 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

22. “… 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

23. 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

24. 4. The Dual Labor Market Theory Main proponent: Piore (1979)
Several factors contribute to create structural demand for foreign workers

25. 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.

26. 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

27. 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

28. 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 28

29. 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.

30. 5. The World System Theory

31. 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

32. 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.)

33. 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

34. 2012

35. 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

37. 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

38. 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

39. 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

40. 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)

41. 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

42. Macro explanations 1. Push/Pull factors
- Demographic imbalances
Economics imbalances
Political factors
In the origin country
Sustained demographic
growth high potential labour supply
Unemployment, underemployment, low lyfe style
High pressure towards emigration 42

43. Diagram 1
Diagram 1

44. 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)

45. Geographical proximity
Political change
Demographic reasons
Economic reasons
Economic reasons
Population pressure
in area leads to out
migration
Asylum seeking
Income inequality
between developed
countries and
developing
countries
Push
factors
Contemporary
Migration
The collapse Berlin’s
Wall, 1989
Pull
factors
Geographical proximity
Black market
Weak immigration
law system
Segmented
Demand labour
market – low skilled
Migratory chaine,
Family riunification

46. 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 46

47. 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

48. Is there any correspondance between labour workforce demand countries and attractives immigration countries? 48

51. 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

52. 3. The mobility transition
See chapter Theories 3.a

53. Mobility Transition Model ↑ ↓ Demographic Transition Model

54. 4.The systems approach (Kritz,1992)
Work of the international union for the scientific studies of population (Iussp), 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)

55. 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)

56. 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

57. 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”