The Neoclassical Diligration And The Neo-Classical Equilibrium Theory

Improved Essays
The Neo-Classical Equilibrium
This theory describes where people are expected to move from low income to high income areas, it is possible from rural areas to urban areas, the general notion that migration movements tend regardless to a certain spatial-economic equilibrium (Castles & Miller 2003:22). Although the issue of migration has not attracted substantial attention within mainstream economic theory itself (Bauer & Zimmermann 1998:95; Lee 1966:48; Passaris 1989-7), in economics, genral equilibrium theory attempts to explain migration by geographical differences in the supply and demand for labour in economic ideology. The resulting differentials in wages cause workers to move from low-wage, labour-surplus regions to high-wage, labour
…show more content…
(Todaro 1969:139), the expected income in the destination area not only depends on the actual (or average) earnings at the destination, but also on the probability of employment. The assumption is that, as long as rural-urban income differences remain high enough to outweigh the risk of becoming unemployed, the “lure of relatively higher permanent incomes will continue to attract a steady stream of rural migrants” (Todaro 1969:147). Neo-classical migration theory is also not able to deal with constraining factors such as government restrictions on migration. Neo-classical migration economy has also been criticized for being a-historical and Eurocentric, supposing that migration (i.e., the transfer of labour from agricultural rural to industrial urban sectors) fulfils the same facilitating role in the ‘modernization’ of currently developing countries as it did in nineteenth and twentieth century Europe. In fact, the structural conditions under which contemporary migration in and from developing countries takes place are rather different, although perhaps not …show more content…
For instance, under developed countries tends to have poor access to the resources and vise versa. Instead of modernizing and moving towards more advance economic development, underdeveloped countries are trapped by their disadvantaged position within the global geopolitical structure. Historical-structuralism has dominated migration research in the 1970s and most of the 1980s. There is increasing consensus that capitalism as such cannot be blamed for the problems of under development, but the specific developmental effects of incorporation of a region or country into the global capitalist system seems to depend much more on the conditions under which this takes place, that is, how the incorporation is embedded into wider institutional structures as well as the internal socio-political cohesion and economic strength of countries and regions. Thus, depending on these circumstances, the incorporation into global capitalism can have both positive and negative effects in different areas of development and on different groups of people within society. In the same vein, (labour) migration cannot automatically be interpreted as a desperate flight from misery, not only because it is seldom the poorest who migrate, but also because we can at least not logically rule out the possibility that migration facilitates development through

Related Documents

  • Decent Essays

    Wealth is also a great factor to their emigration due to laws of trade, inheritance, European loans and their everyday productive…

    • 470 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    Cherokee Pull Factors

    • 2141 Words
    • 9 Pages

    In the past few years migration has changed drastically. People from all over the world are looking for a better way of life. People migrate because of the weather, the economy, a different life style, and other reasons. Economics and oppression make people move to other countries or locations looking for better living standards. There are two main factors that influence migration.…

    • 2141 Words
    • 9 Pages
    Superior Essays
  • Superior Essays

    Atlanta Migration Analysis

    • 1531 Words
    • 6 Pages

    The migration effectiveness index values vary between -100 and +100. The high (negative or positive) values indicate that net migration is an efficient mechanism for population redistribution. Conversely, values closer to zero signify that migration flows are more closely balanced leading to comparatively little redistribution (Stillwell et al. 2000). Migration effectiveness measures the degree of imbalance, or asymmetry, between migration flows and counter flows. Significant population exchanges take place because individual areas that perform specific roles within the settlement system (such as cities) attract migrants.…

    • 1531 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    In this sense, situating those countries in a “superiority” level in which the now “underdeveloped” countries must follow their doctrines and/or advices if they want to become a developed nation in the future. Once again, it is possible to see how political and economic power are the true drivers of those interactions and not the true necessity of making the world a better…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Walter Rodney did the same thing in his article, he just broke it down in two parts the developed and the underdeveloped. Walters goes on to say that a common reason why a country is usually undeveloped is because of exploitation by another country. He even says that all the countries in the world that are underdeveloped are being exploited by another country. The product of that is capitalism, where a country’s trade and industry are controlled by private owners for profit rather than by the state. Another product of exploitation is imperialism, when a country increases its power gaining control over other areas of the…

    • 934 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The majority of people in rural areas had to migrate to the urban areas for employment. This movement called urbanization was one…

    • 869 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The increasing urbanization trends in the past show that there is larger migration from rural to urban parts of India. Various push & pull factors are the reason for rural to urban migration of these ISM laborers, which arise due to regional disparities among the states in India. The major push factors for migration in villages are low daily wages, lack of job opportunities, water scarcity, family problems, migration of spouses etc. While the pull factors in cities or urban areas are high wages, immense job opportunities, access to basic amenities & water, comfort & convenience, high quality of…

    • 2072 Words
    • 9 Pages
    Great Essays
  • Superior Essays

    Sample Research Paper

    • 1595 Words
    • 7 Pages

    Free Response Grading Sample 1: The student was asked to define core-periphery, distance-decay and child migration in part A. One point for each definition could have been awarded to the student. Sample 1 student did not receive a point for the definition of part A number one because the student solely focused on the financial well-being of specific countries rather than the unequal distribution of cultural, political and economic power. Spatial distribution should have been mentioned, a specific example of economical core-periphery does not substitute for the definition of core-periphery. The student was awarded 1 point for part A number two because she briefly explained the definition of distance-decay by writing in terms of migration.…

    • 1595 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Global Labor Arbitrage

    • 388 Words
    • 2 Pages

    The globalization of production and its shift to low-wage countries is the most significant and dynamic transformation of the neoliberal era. Its fundamental driving force is what some economists call “global labor arbitrage”: the efforts by firms in Europe, North America, and Japan to cut costs and boost profits by replacing higher-waged domestic labor with cheaper foreign labor, achieved either through emigration of production (“outsourcing,” as used here) or through immigration of workers. Reduction in tariffs and removal of barriers to capital flows have spurred the migration of production to low-wage countries, but militarization of borders and rising xenophobia have had the opposite effect on the migration of workers from these countries—not…

    • 388 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Introduction: Since the reform and opening-up policy was released in 1978, the Chinese rural-to-urban migration has become a very important social phenomenon. Large quantities of surplus labor forces in countryside, which come into being migrant workers, flocked into China 's busiest and most international metropolises. According to (Chan, 2011), “In the 30 years since 1979, China’s urban population has grown by about 440 million to 622 million in 2009” (p.1). In the rapid-growing urban population, more than half of the migrants are from rural areas, some of whom obtained the urban household registration, but the vast majority of people still in the state of the floating population. In general, these migrants have to give up the right to use…

    • 1188 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Immigrants are open to exploitation due to their weak bargaining power, as well as their unfamiliarity with the available grievance or justice systems, or due to the ‘illegality’ of their status in that country. This leaves the dependents at home in a risky situation, low economic returns means that they may not meet loan repayments and eventually free itself from debt. Not only does the immigrant face adverse conditions but leaves his home vulnerable as well. It means an increased work load for the women at home, and in some cases may prevent children from going to school.…

    • 720 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    If the deficit of one sector must be equivalent to the surplus of another area (Business Insider, 2011), then it can be applied to the capitalist sector and rural sector respectively. Despite the technological advances of the capitalist region, it lacks the human resources to support its progression which can lead to an economic downturn as projects are abandoned, and investors are unwilling to continue its financial aid. Contrastingly, the small businesses in the rural areas do not produce sufficient output for an individual (Lewis, 1954). Hence, there is a migration of labour from the subsistence sector to the capitalist sector, and thus, increasing the urban production. However, the description fits more so for developing countries such as China, Vietnam and Cambodia where rural workers move to the capital area to seek…

    • 1143 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Holly Cowper 1875 Words Marxism as an approach to International Relations is often analysed and discussed in regards to the significance of its contribution as a theory in International Relations. Criticism is present surrounding the weaknesses of the theory as well as its potential irrelevance. In order to critically evaluate the Marxist approach to International Relations, I will conduct a thorough analysis of both the significant strengths and weaknesses of the theory as well as its continuing relevance in modern times. This examination of the central aspects of Marxism in regards to International Relations will effectively allow me to develop an in-depth conclusion of the ways in which Marxist theory contributes to our understanding…

    • 1793 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Urban Migration Essay

    • 874 Words
    • 4 Pages

    These migration cities have developed very rapidly, but people with a low level of education have not been able to keep pace with this development and immigrants can not meet the demand of many business segments in cities because they can not respond to the needs of employers with advanced knowledge and technology expectations so increase unemployment rates in urban areas. There are several steps to solve this problem; including the extension of irrigation areas in agriculture, the modernization of agricultural methods, the development and dissemination of fattening and barn stockbreeding, the dissemination of education and health services in rural areas, the shift of agriculture and livestock industry sectors to rural areas and the development of small industries in rural…

    • 874 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Street Hawking Case Study

    • 1727 Words
    • 7 Pages

    The problems associated with rural-urban migration,…

    • 1727 Words
    • 7 Pages
    Great Essays