Understanding International Migration Theories

Neoclassical Theory of Migration

This theory incorporates both macro and micro perspectives. It is fundamentally based on principles such as rational choice, maximizing advantages, income differentials, and net benefits.

Macro-Level Perspective

At the macro level, migrations occur due to differences in the supply and demand of labor across various locations, directly associated with wage disparities. Workers tend to move to places where salaries are higher.

Micro-Level Perspective

At the micro level, the neoclassical theory posits that individuals migrate after rationally considering the costs and benefits of the move. Therefore, it is the differentials in expected incomes and benefits—rather than merely salary differences—that motivate people to relocate.

In this regard, even before migrants begin to see an increase in their income, they face a number of expenses, including:

• Travel costs
• Food and living expenses
• Language learning
• Opportunity costs

The theory defines net benefits using the following formula:

Net Benefits = Expected Benefits – (Benefits in Origin × Probability of Finding Employment) – Psychological Costs Associated with Migrating

Limitations of Neoclassical Theory

The main problems with this theory include:

• Explaining Low Migration Rates: How do we explain that only about 3% of the global population migrates, even when income differentials are remarkably significant across countries and continents?
• Ignoring Policy and Legal Barriers: This theory does not adequately account for the policy restrictions and legal challenges migrants frequently encounter.

The New Economics of Labor Migration

The late 20th century witnessed dramatic changes in international migration patterns. Fundamentally, migration flows became much more heterogeneous, and immigration laws grew increasingly restrictive. Labor migrations are no longer the sole type, nor even the most numerous (e.g., consider refugees).

The "New Economics of Labor Migration" theory still finds its roots in rational choice, but it shifts the decision-making unit from single individuals to collectivities. Now, groups of people (such as families or communities) decide to seek new opportunities elsewhere, often after recognizing the shortcomings of the system in their country of origin. Risks are consequently distributed among the different members involved in the migration process.

Dual Labor Market Theory

According to M. Piore (1979), migrations occur because developed countries maintain a constant demand for cheap, often migrant, labor. The economic structures of advanced industrial societies create a chronic need for workers to sustain their systems.

In this framework, the salaries offered do not respond to the conditions of free supply and demand in the market. There is a clear hierarchy of prestige, and certain jobs are not accepted by the native population. As a result, in the "underground" or secondary labor market segment, conditions tend to be uncomfortable, unstable, and characterized by very low salaries. Historically, this segment often included specific demographic groups like youth and women.