Migration and Development in the Mediterranean

The situation where factor prices (like wages and rentals) remain unchanged despite changes in the amount of labor or capital available. This occurs when factors of production are perfectly mobile between industries.

An economic model that examines the short-term effects of immigration on a destination country, focusing on the impact on specific factors of production (labor, capital, and land).

The value of the extra output produced by adding one more unit of labor. It's the amount a worker contributes to a company's profit.

The principle that as more units of a factor of production (like labor) are added to a fixed amount of other factors, the additional output gained from each extra unit will decrease.

A situation where the wages of lower-skilled workers are affected most by immigration, while the wages of highly skilled workers are affected less. This is due to the influx of immigrants competing primarily in low-skilled labor pools.

Immigration's short-run effects include lower wages for domestic workers and higher returns for capital owners in the destination country. This is due to increased labor supply, which lowers wages and drives up the demand for capital.

The assumption that all workers within a particular skill level are identical in their productivity and abilities, ignoring individual variances.

The Rybczynski theorem explains that an increase in the amount of one factor of production (like labor) will lead to an increase in the output of the industry that is intensive in that factor (labor-intensive) and a decrease in the output of the industry that uses that factor less (capital-intensive).

The extra labor resulting from immigration is initially allocated equally across both industries, assuming land and capital remain fixed in the short run.

In the long run, immigration leads to a shift in resources towards the labor-intensive industry (shoes) and away from the capital-intensive industry (computers), resulting in a change in output levels.

The total amount of capital in the economy is the sum of capital used in the shoe industry (Ks) and the computer industry (Kc).

The total available labor is the sum of labor used in the shoe industry (Ls) and the computer industry (Lc).

The ratio of capital to labor (K/L) in each industry determines real wages and rentals.

Due to immigration, labor in the home country increases by ΔL, and the extra labor is allocated primarily to the labor-intensive industry (shoes).

Immigration shifts the production possibilities frontier outwards, increasing the output of the labor-intensive industry (shoes) and decreasing the output of the capital-intensive industry (computers).

The slopes of the production possibilities frontiers (PPF) are equal at equilibrium, reflecting identical prices for shoes and computers.

Wealthier, more educated, and less-nationalist individuals in rich destination countries tend to have more positive opinions about immigration.

The flow of immigrants to a country (∆ xs) often exceeds the demand for immigrant workers (∆ xd) when a country has a demand for immigrant workers and porous borders due to geography or legal obligations.

When a country lacks formal unemployment benefits, it can encourage informal employment. Low-skilled workers often find employment in the informal sector due to its lack of regulations and social benefits.

Excessive regulations and minimum wages in the formal sector can contribute to the growth of the informal sector because they make it difficult for employers to hire workers in the formal sector.

The higher the minimum wage set in the formal sector, the lower the equilibrium wage in the informal sector. This is because the demand for workers in the informal sector increases as businesses avoid paying higher wages in the formal sector.

The Lewis Model describes how an economy can transition from a predominantly agricultural to a predominantly manufacturing-based economy. It highlights the role of surplus labor in the agricultural sector fueling industrial growth.

The Lewis Model assumes that there is an unlimited supply of labor due to a growing population. This labor can be readily transferred from the agricultural sector to the industrial sector.

The Lewis Model assumes that capital and natural resources are the main limitations to economic development. These factors determine the growth potential of the industrial sector.

The situation where economic growth in developing countries, while intended to reduce migration, might actually increase it.

A situation where an individual's ability to escape poverty is limited due to a lack of assets. Even with hard work, they remain trapped in a cycle of poverty.

The tendency for highly skilled and educated individuals to migrate from developing countries, leaving a shortage of qualified talent in their home countries.

The idea that some people are more likely to migrate than others based on their qualifications, skills, and financial resources. This creates a selection bias in the data used to study migration.

A tax imposed on people who migrate to deter emigration and potentially benefit the sending country by encouraging skilled workers to stay.

The sector of an economy characterized by low productivity and wages that are barely enough for workers to survive.

The idea that wages in the traditional sector are kept low due to the low productivity of workers, perpetuating a cycle of poverty.

A phenomenon where the wage rate in the capitalist sector rises due to increased capital accumulation, eventually reaching a point where it equals the average product of the family farm in the subsistence sector.

The process of accumulating more capital, increasing the demand for labor, and driving economic growth.

The process of workers moving from traditional subsistence sectors to more modern, capital-intensive sectors.

The paradoxical situation where despite high urban unemployment, rural workers continue to migrate to cities in search of higher wages.

The rate of urban employment needed for rural-urban migration to cease.

The use of money sent by migrants to their families back home, often crucial for improving household finances, investments, and overall welfare.

The idea that migration can be a method for managing risks, such as economic instability or natural disasters.

A method of assessing vulnerability that considers the level of assets a household owns. It helps to understand a household's resilience to shocks and their ability to recover.

A type of research design used in social sciences, where a naturally occurring event (like a hurricane) acts as an 'experiment' to study the impact on a group of people. It's not a controlled experiment, but can provide insights.

The tendency for a vulnerable group to experience a slower rate of economic growth compared to others. This is often linked to external shocks, like climate events, that hinder development and trap individuals in a cycle of poverty.

The process of identifying and understanding the factors that make individuals, communities, or systems susceptible to the negative impacts of hazards or stresses, like climate change.

Household consumption level that acts as a turning point in how climate shocks affect a household. Households below this threshold are more likely to experience negative impacts on their consumption and have a harder time recovering than households above it.

A theoretical model used in economics to understand how the factors of production (labor, capital, and land) are allocated in industries and how they respond to changes in these factors. It's often used to analyze the effects of immigration on labor markets.

A theoretical framework that explores the relationship between resource endowments, factor prices, and trade patterns. It helps to understand how countries specialize in the production of goods that use their plentiful resources.