Migration Theories Quiz

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Questions and Answers

According to the disequilibrium approach, what primarily drives migration?

  • The cultural and lifestyle aspects of the destination.
  • Personal preferences of the migrant.
  • The availability of social services at the destination.
  • Differences in wages and employment opportunities. (correct)

What is the central premise of the segmented or dual labor market theory regarding migration?

  • Migration is mainly a result of push factors in the origin country.
  • Migration is primarily influenced by the availability of advanced medical services.
  • Migration is primarily driven by individual rational decisions based on personal preferences.
  • Migration is driven by the labor demand in a segmented labor market at the destination. (correct)

In the context of migration, what does 'T' represent in the human capital model?

  • The length of time one expects to work at the job/place. (correct)
  • The total cost of migration.
  • The utility derived from the old job.
  • The discount rate.

According to the human capital approach, what does $B_{NEWt}$ represent?

<p>The utility derived from the new job in year t. (B)</p> Signup and view all the answers

What does the segmented labor market theory suggest about the types of jobs commonly taken by migrant workers?

<p>Secondary sector jobs characterized by low wages and poor conditions. (A)</p> Signup and view all the answers

Which theory suggests that potential migrants select the locality where the expected net benefit is greatest?

<p>Disequilibrium approach (D)</p> Signup and view all the answers

According to Todaro and Sjaastad, which factor is the most influential in push-pull migration?

<p>Economic factors (B)</p> Signup and view all the answers

What does the net present value (NPV) equation, used to evaluate the benefits of mobility, assume about direct costs?

<p>They are one-time costs. (C)</p> Signup and view all the answers

According to the model presented, under what condition is mobility or migration considered reasonable?

<p>When the Net Present Value (NPV) is greater than zero. (B)</p> Signup and view all the answers

Based on the model, which factors are identified as the main determinants of mobility?

<p>Age, education, marital status, distance, and time preference. (D)</p> Signup and view all the answers

According to Stark and Bloom's 'New economics of labor migration', how are individual migration decisions best understood?

<p>As influenced by broader social entities, such as households or communities. (A)</p> Signup and view all the answers

What role does 'relative deprivation' play in Stark and Bloom's new economics of labor migration?

<p>It is a significant motivator for migration, where those who feel more deprived are more likely to move. (C)</p> Signup and view all the answers

What is the main idea of the 'Equilibrium approach' to migration, as represented by the work of Graves cited in Greenwood?

<p>Spatial wage differences are compensating differentials, reflecting differences in amenities. (D)</p> Signup and view all the answers

What constitutes a utility differential that would motivate an individual to migrate?

<p>Non-compensating regional differences in wages after considering amenity differentials. (A)</p> Signup and view all the answers

How many major stages are involved in the migration process?

<p>Three (B)</p> Signup and view all the answers

Which of the following is NOT considered as one of the three key stages in the migration process?

<p>The re-evaluation of the migration decision. (B)</p> Signup and view all the answers

What is a primary way international labor migration can initially alleviate economic hardship in sending countries?

<p>By reducing the number of job-seekers. (B)</p> Signup and view all the answers

In the long term, how can emigration potentially impact job opportunities in sending countries?

<p>By reducing job opportunities due to capital substitution. (C)</p> Signup and view all the answers

What is a potential short-term effect of large-scale emigration on domestic wages?

<p>A rise in wages for workers with similar skills. (B)</p> Signup and view all the answers

How might return migrants contribute to job creation in their home countries?

<p>By setting up entrepreneurial activities. (C)</p> Signup and view all the answers

Which term describes the potential positive impact of returnees bringing new skills and values to their home country?

<p>Brain gain (D)</p> Signup and view all the answers

What is the term used to describe the phenomenon where the most skilled and educated workers leave their home country?

<p>Brain drain (B)</p> Signup and view all the answers

What is 'brain waste' in the context of migration?

<p>The reduction of human capital through (return) migration. (B)</p> Signup and view all the answers

According to the content, what are the three main channels through which international labor migration affects sending countries?

<p>Remittances, return migration, and diaspora. (B)</p> Signup and view all the answers

In what way does the emigration of teaching professionals have a dual negative impact on the sending country?

<p>It directly depletes the country's human capital and indirectly hinders the education of future generations. (C)</p> Signup and view all the answers

Which of the following is an accurate long term effect of emigration, according the the information?

<p>Long-term reduction of human capital due to 'brain waste'. (B)</p> Signup and view all the answers

What is meant by the 'moral hazard problem' in the context of emigration?

<p>The dependency of families on remittances, leading to reduced labor efforts. (B)</p> Signup and view all the answers

How might large-scale emigration negatively affect the age structure of the sending region?

<p>It can result in a depletion of the population and an aging structure. (B)</p> Signup and view all the answers

What can trigger a rise in wages for workers with similar skills in the short term in sending countries?

<p>Large-scale emigration causing temporary labor shortages. (B)</p> Signup and view all the answers

How can the diaspora contribute to sending countries?

<p>This information is not covered in the text. (D)</p> Signup and view all the answers

How can labor migration influence marriage and fertility rates?

<p>It can alter behaviors and incentives due to separations or reduction in the number of individuals of reproductive age. (D)</p> Signup and view all the answers

What is a potential impact of labor migration on the health of the sending country?

<p>A brain drain of health workers, adverse effects on the health of migrant workers, and increased disease transmission. (D)</p> Signup and view all the answers

What are the potential negative effects of long-term parental labor migration on children left behind?

<p>Detrimental effects on educational outcomes, health, and economic activity. (A)</p> Signup and view all the answers

How can remittances contribute to economic growth and investment in the sending countries?

<p>By providing resources for investment in production, stimulating exports, and contributing to human capital. (B)</p> Signup and view all the answers

Besides economic growth, what other aspects of development do remittances boost?

<p>They boost investment in education and health thus contributing to human capital formation. (A)</p> Signup and view all the answers

How can remittances and extra income from migration increase overall output?

<p>Through higher household consumption, leading to multiplier effects that stimulate the market. (A)</p> Signup and view all the answers

What is one potential negative impact of remittances on a sending country's economy?

<p>They can provoke inflation. (A)</p> Signup and view all the answers

How can remittances affect the balance of payments in a sending country?

<p>They can worsen the balance of payments through increased imports. (A)</p> Signup and view all the answers

In what way can labor migration improve living standards of households?

<p>By providing opportunities to finance essential human needs. (C)</p> Signup and view all the answers

What is a possible consequence of remittances on income inequality in sending areas?

<p>They can increase income inequality if the poor are underrepresented among migrants. (A)</p> Signup and view all the answers

What role does labor migration play in public budgets and policies in sending countries?

<p>It allows temporary relief from unemployment and poverty. (C)</p> Signup and view all the answers

Flashcards

Disequilibrium approach to migration

The theory suggests that people move to places where they can earn more money or have better job opportunities.

Neoclassical economic theory of migration

This theory suggests that migration is driven by economic factors, with individuals choosing the location where they can maximize their potential earnings after considering migration costs.

Segmented labor market theory of migration

The theory posits that migration is driven by demand for labor in segmented labor markets, specifically in secondary sectors that offer undesirable jobs that locals are unwilling to take.

BNEWt

The utility derived from the new job in a given year.

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BOLDt

The utility derived from the old job in a given year.

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T

The length of time one expects to work at a specific job or location.

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r

The discount rate used to calculate the present value of future benefits.

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International Labor Migration

The process by which individuals move from their home country to another country seeking employment.

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Remittances

Money sent back to a home country by individuals who have migrated for work.

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Return Migration

When migrants return to their home country after working abroad.

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Diaspora

A group of people who share a common origin, culture, or language, living outside their homeland.

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Reduced Unemployment in Sending Countries

The potential benefit of international labor migration for sending countries where it can reduce unemployment by decreasing the number of job seekers.

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Labor Shortages in Sending Countries

The potential negative effect of international labor migration for sending countries where it can lead to a shortage of workers in certain industries or regions.

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Increased Wages in Sending Countries

The potential positive effect of international labor migration for sending countries where it can lead to an increase in wages for workers with similar skills.

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Brain Gain

The positive effect of return migration where migrants bring back new skills, knowledge, and experiences that can benefit the home country.

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Brain Waste

The negative effect of return migration or emigration where the home country loses skilled workers to other countries.

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Entrepreneurship and Job Creation

The positive effect of international labor migration for sending countries where remittances allow migrants' families to start businesses and create new jobs.

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Moral Hazard (in migration)

When a family member relies on remittances instead of taking on work, potentially impacting their motivation to seek employment.

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Demographic Change (due to migration)

The impact of migration on the age structure of a population, especially in areas with high emigration rates.

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Social Impact of Migration

The effect of migration on marriage, divorce, and fertility rates. For example, migration can lead to separation of couples across international boundaries.

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Impact of Parental Migration on Children

The negative effect on children left behind when one or both parents migrate for work. This can impact their education, health, and future opportunities.

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Positive Economic Impact of Migration

How migration can contribute to economic development by providing a source of investment in education, health, and innovative activities.

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Technology Transfer through Migration

The process of transferring knowledge, skills, and technologies from migrants abroad to their home countries.

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The Multiplier Effect (in migration)

The idea that increased economic activity stimulates further economic growth due to increased income and spending.

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What is net present value (NPV) in the context of migration?

The net present value (NPV) is used to calculate the overall benefits of a move, weighing the present value of future earnings in the new location against the current earnings and the cost of moving.

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What is the New Economics of Labor Migration?

The theory states that migration is driven by economic factors, with individuals choosing the location where they can maximize their potential earnings after considering migration costs.

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How does the 'New Economics of Labor Migration' differ from the traditional economic approach?

A household or community, not just an individual, makes the decision to migrate.

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What is the risk diversification aspect of the 'New Economics of Labor Migration'?

The theory suggests that migration can be viewed as a strategy to diversify risks by a household that has insufficient income.

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What is the role of relative deprivation in the 'New Economics of Labor Migration'?

The theory suggests that individuals who are more relatively deprived are more likely to migrate than those who are less relatively deprived.

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What is the equilibrium approach to migration?

The model suggests that wages adjust across locations to compensate for differences in living standards and amenities. As a result, there are no real opportunities for utility gains through migration.

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What are non-compensating regional differentials?

This approach acknowledges that some regional differences in wages may exist after accounting for differences in living standards and amenities. These differences represent potential utility gains that could motivate migration.

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What are the three main stages of the migration process?

The migration process involves three stages: (1) The propensity to migrate in general, (2) The motivation to migrate to a specific location, and (3) The actual decision to migrate.

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Remittances and Local Development

The inflow of money sent by migrant workers to their home countries can contribute to increased local job opportunities and a more robust financial system due to the boosted demand on non-tradable goods.

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Remittances and Dutch Disease

While remittances can positively influence local economies, the influx of foreign currency can lead to an appreciation of the exchange rate, making a country's exports more expensive and potentially harming its competitiveness in international markets.

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Remittances and Living Standards

Money sent by workers abroad can be used to meet essential needs, access important public services like healthcare and education, provide financial stability during hardships, and improve overall household spending.

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Remittances and Government Budget

Migration and associated remittances can temporarily relieve poverty and unemployment, giving governments more flexibility in their budget allocation.

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Emigration and Long-Term Economic Growth

A decline in the working-age population due to emigration can hinder long-term economic growth because of its negative impact on factors like human capital development and overall economic productivity.

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Study Notes

Migration

  • Migration is the process of permanently changing residence from one geographic location to another.
  • Migration is one of the three basic demographic processes.
  • A universally accepted definition for "migrant" or "migration" does not exist at the international level.
  • The IOM defines a migrant as a person who moves away from their place of usual residence, whether within a country or across an international border, temporarily or permanently, for a variety of reasons.
  • This includes various legal categories of people, such as migrant workers, and persons whose movements are legally defined (e.g., smuggled migrants).
  • It also includes those whose status or methods of movement are not specifically defined in international law.
  • The country of usual residence of a person is the country in which the person has a place to live where they spend the daily period of rest.

Measuring Migration: Stocks vs. Flows

  • Migrant flows refer to the number of migrants that have moved from one country to another within a year, or the number of migration events (e.g., arrivals or departures) in the same period.
  • Sources of data on migration flows include population registers (primarily used), registered movements at borders, residence/work/stay permits, regularizations/apprehensions at borders (irregular migration), and consular records. Household surveys such as LFS and HBS can also be sources. However, household migration data and the number of procedures might not always align with actual migration events or migrant counts.
  • Stocks of migrants represent the group of people who have directly or indirectly experienced a migration event (or are descendants of migrants) and reside in a specific country at a given point.
  • Sources of data on migrant stock include population censuses, population registers/foreign national registers, permits (e.g., December 31st or January 1st), consular records, and household migration surveys.

Criteria of Immigrant Stock Identification

  • Country of birth: Identifies foreign-born population, irrespective of current citizenship.
  • Country of citizenship: Shows the foreign population of a country, considering usual residence and citizenship, irrespective of birth country.
  • Country of birth of parents: Shows residents with immigrant background, regardless of their own citizenship.
  • Race or ethnicity: This criterion is less applicable to countries with diverse populations.
  • Experience of residence abroad: This covers foreign-born and return migrants who have resided abroad for a year or longer.

Measuring Population Migration: Example (Ukraine)

  • The 2001 Ukrainian population census revealed that 5,256,923 people had moved to Ukraine from abroad. Most of these individuals were foreign-born, indicating significant pre-1991 migration.

Indicators of Migration

  • In-migration rate: Inflow per 1000 population
  • Out-migration rate: Outflow per 1000 population
  • Net-migration rate: (Inflows - Outflows) / population * 1000
  • Gross migration rate: (Inflows + Outflows) / population * 1000

Theories of Migration

  • Ravenstein's laws: The majority of migrants move short distances; each major migration flow has a counter flow; long-distance migrants tend to move to major centers of commerce; rural residents migrate more than urban residents; and economic factors are primary motivations
  • Stouffer's intervening opportunities theory: Number of migrants traveling a distance is proportional to opportunities, inversely proportional to intervening opportunities.
  • Zipf's size-distance hypothesis: Migration volume is related to the population sizes of the location and distance.
  • Tiebout's voting with feet hypothesis: Individuals migrate based on local public goods and taxes.
  • Lee's push-pull theory: Migration depends on origin and destination factors including intervening obstacles and personal characteristics.
  • Todaro's model: Migration is driven by spatial differences in wages or earnings. This model highlights the role of economic factors.
  • New economics of labour migration: Migration is driven by household/community decisions rather than just individual decisions; Migration is a strategy to diversify risks by a household
  • Stark and Bloom (1985): Migration as a response to income/earnings inequalities and relative deprivation within a community.

Push and Pull Factors

  • Push factors (origin): Poverty, low wages, high unemployment, high taxes, overpopulation, discrimination, poor healthcare, war, oppression, corruption, crime, compulsory military service, environment/climate, famine, pandemic, attitudes.
  • Pull factors (destination): Demand for labor, high wages, generous welfare benefits, good healthcare and education, strong economic growth, technology, low cost of living, family, rights, freedoms, property, law and order, amenities, culture, language

Potential effects of international labor migration in sending countries

  • Labor market: Emigration may relieve unemployment in the short term but can lead to temporary labor shortages, possibly substituting capital for labor.
  • Human capital: Returning migrants can bring new skills and attitudes, promoting job creation. However, an outflow of skilled workers can negatively impact productivity and future generations.
  • Demographic and social effects: Large-scale emigration impacts age structure and economic viability, potentially impacting marriage and fertility rates.
  • Economic growth and development: Remittances can boost investment in education/health, potentially stimulating exports and economic growth. Increased consumption of foreign goods may cause inflation.
  • Living standards: Remittances are often crucial for meeting essential needs and improving living standards. However, they can exacerbate income inequality.
  • Public budget and public policy: Labor migration releases social funds and grants fiscal freedom to governments; however, migration can diminish incentives for domestic reforms and increase external shocks

Potential Effects of International Labor Migration in Receiving Countries

  • Labor market: Immigration can influence wages and employment for both immigrants and native-born workers. Studies show the labor market effects are not significant for the native population.
  • Demographic Effects: Increased immigration in ageing societies can influence demography by providing workers.
  • Productivity and economic growth: Immigration can increase specialization, innovation, and reduce protectionism, leading to higher productivity and economic growth.
  • Public budget: Immigration can increase the tax base, but the expanded demand for public services may negatively impact public budgets.

Tasks for Practical Class

  • Collect and analyze data on Ukrainian migration to EU countries from Eurostat.
  • Read recommended literature (e.g., IOM, textbooks, related articles).

Annex: WDR-2023 Framework

  • Policymakers framework proposed by the World Bank, categorized into "Match" (economic gains) and "Motive" (migrant's reasons) matrix, with different options for international cooperation depending on the match and motive.

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