Theories Of Neoclassical Theory Of Migration

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Neoclassical Theory of Migration One of the oldest and most commonly used theory used to explain migration is the Neoclassical theory of Migration. Neoclassical Theory (Sjaastad 1962; Todaro 1969) proposes that international migration is connected to the global supply and demand for labor. Nations with scarce labor supply and high demand will have high wages that attract immigrants from nations with a surplus of labor. The main assumption of neoclassical theory of migration is led by the push factors which cause person to leave and the pull forces which draw them to come to that nation. The Neoclassical theory states that the major cause of migration is different pay and access to jobs even though it looks at other factors contributing to the departure, the essential position is taken by individual higher wages benefit element. The Neoclassical theory involves the macroeconomic and microeconomic aspect. Macro focusing on structural factors and microeconomic focusing on an individual choice to migrate (Weiss, 2003). The macro theory is perhaps the most well-known approach explaining the causes of migration, it came from the theoretical model explaining internal labor migration in light of economic development (Corry 1996, Harris and Todaro 1970). According to the theory assumptions: 1. The main reason for labor migration are variations in wages between the sending country and a receiving country. Basically, if the wage differences are eliminated it will end international

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