vi c. national migration [see text, chapter 7, pp. 355-360 and 363- 368.] econ 3508november 2015
TRANSCRIPT
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VI C. National Migration
[See text, Chapter 7, pp. 355-360 and 363-368.]
ECON 3508 November 2015
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AgendaNational Migration
A. Why do People MigrateA. People’s Motivations
B. Underlying Forces
B. The Migratory ProcessA. Varieties of migration
C. The “Harris-Todaro Model” of Migration
D. Is Internal Migration Desirable?
E. Policy Implications
International Migration
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A. Why do People Migrate
People’s Motivations :
Push factors: real income, security, opportunity:Environmental factors (drought, land degradation, salinization)
Population pressures on the land (excessive land fragmentation; land ownership patterns)
Political instability and civil conflict (e.g. Colombia)
Non-economic Factors: To break the bonds of traditional rural society
Pull factors: real income, security, opportunityUrban employment opportunities
Income possibilities
Urban amenities; water electricity, modern housing, quality of life, cultural
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A. Why do People Migrate
Underlying Forces
– Structural Change
– Technological Change
– All factors affecting agriculture and rural development relative to urban development
– All factors affecting the location of economic activity
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B. The Migratory Process
• Who Migrates?
• Varieties of Migration• Rural to urban• Rural to rural• Urban to urban• Urban to rural?• Seasonal• Commuting
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Components of Migration in Selected Countries
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C. The “Harris-Todaro Model” of Migration
Intuitive version or verbal version;– Migration is a rational decision– The decision depends on expected rather than actual
wage differentials– The probability of obtaining a city job is inversely
related to the urban unemployment rate– High rates of migration are outcomes of rural urban
imbalances
Graphical version: OMITTED
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OMIT: The Graphical Model
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Economic Implications of Migration– Accommodating structural change in an
economy– Permitting shifts from low to higher
productivity economic activities – Shifting of “surplus labour”– Relief of rural population pressures– Migrants are presumably better off and usually
or else they would return if they were not
– Socioeconomic costs on urban areas– Socioeconomic costs for areas of origin
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D. Is Rural to Urban Migration Desirable?A. From the perspective of the migrants?
B. From a societal perspective?
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D. Is Rural to Urban Migration Desirable?B. From a societal perspective NOTE: AN ECONOMIC ANALYISIS WOULD FOCUS ON
BOTH PRIVATE AND PUBLIC (OR SOCIAL) COSTS AND BENEFITS.
The Positives• Surplus labour leaves the land;
• Rural population pressures are relieved;
• Structural change in the economy is made possible;
• Higher productivity made possible in urban activities;
• Higher incomes for migrants
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D. Is Rural to Urban Migration Desirable?
B. From a societal perspective?
The Negatives: Unemployment and underemployment in urban areas
Inundation of people into informal sector activities
Overcrowding & congestion;
Shanty-towns and inadequate housing;
Crime and social dysfunction?
Overburdened infrastructure
Increased taxes to accommodate new-comers
Higher costs of infrastructure as cities expand further
Environmental costs
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D. Is Internal Migration Desirable? Cont’d:
• Rural-to-urban migration was viewed positively until recently
• The current view is that this migration is greater or more rapid than the urban areas’ abilities to– Create jobs
– Provide social services
• Therefore, slow down the migratory process in those countries where it is very rapid.
HOW?
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E. Policy ImplicationsSlow down rural-urban migration. HOW?
• Create a better urban-rural balance; Reduce “Urban Bias”
– Eliminate all “biases” favouring large cities at the expense of small towns, rural areas and regions;
– Eliminate factor price distortions that favour “capital” industry and urban areas;
– Emphasize rural infrastructure
• Promote rural and regional development
– Expand small-scale, labor intensive industries in rural areas small towns and secondary cities;
– Broaden the economic base of rural areas; Programs of integrated rural development should be encouraged to generate rural jobs and higher incomes;
– Decentralize authority to cities, towns and neighborhoods;
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F. Policy ImplicationsSlow down rural-urban migration. HOW? Cont’d
• Choose appropriate labor-intensive technologies of production where possible;
• Modify carefully the linkage between education and employment;
• Reduce population growth;
• Urban job creation is insufficient for reducing urban unemployment;
– Improve rural incomes and jobs as well
– Urban wage subsidies can be counterproductive, merely inducing more migration and unemployment
– Avoid “Induced Migration” by trying to create urban jobs while neglecting rural areas;
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International Migration
NOTE: This topic is deleted due to a lack of time. If you would like to examine it yourself, please see the World Mogration Rewport, 2015 here: World Migration Report 2015 – Migrants World Migration Report 2015 – Migrants and Cities: New Partnerships to Manage Mobilityand Cities: New Partnerships to Manage Mobility