Neoclassical Theory Of Migration

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Migration is a phenomenon that always has been along the human race, people were looking for better places to leave considering weather conditions, food supply and all other variables that are maintaining life and are leading to improved living standards. Nowadays, these variables are a little bit different as concept but are having the same purpose, mainly because towards to human development and industrial revolution the reasons of migration have evolved. There are many studies regarding what makes people migrate.
Most individuals choose to emigrate when their income declines, to this reason there are other motivations that can be added related more to the sociological aspects that trigger the people to emigrate as: food, health care, shelter, …show more content…

Literature review on migration versus(related to) social protection

Migration literature is generouse in approaches and theories explaining migration. The neoclassical theory highlights the role of economic determinants of migration (Lewis, 1954; Todaro, 1976). The new economics of labour migration (NELM) developed during the 80s (Stark & Bloom, 1985) allows for integrating factors other than individual income maximization as influencing migration decision-making. Other theories introduce the idea of status and prestige in explaining migration (Piore, 1979) or the role of legislative factors, of factors related to the emigrant’s social network or of cultural factors.
More recently, the level of social protection was considered as an influential tererminant of migration. The welfare magnet hypothesis was first coined in a seminar paper by Borjas (1999). This hypothesis refers to how welfare generosity acts as a pull factor for migration and how it inuences the skill composition of immigrants. More specifically, it states that immigrants prefer to locate in countries with generous welfare provisions to insure themselves against labor market …show more content…

In study of migration Jennissen (2003) used a panel data for Western European countries over a period from 1960 to 1998 to estimate the influence of economic determinants on net international migration, and found that GDP per capita has a positive effect and unemployment a negative effect on international migration. Also, the same study was made across the UE countries before and after 2004 enlargement, by comparing the UE 10 with UE 15. The authors used as regressors: GDP per capita and unemployment rate but also they have added Gini index and years of schooling, the results showing that the higher GDP per capita, the less are willing the individuals to emigrate (Zimmermann and Zaiceva, 2008).
We apply a multiple regression model for panel data, using as dependent variable the crude rate migration. We employ four independent variables for capturing some of the most relevant economic determinants of international migration, including our interest variable that describes the level of social protection. Therefore, the level of economic development acts as a migration pull factor and we employ in this sense the GDP per capita. The indicator is calculated as the ratio of GDP to the average population of a specific

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