Neo-Classical Theory of Migration

Neoclassical theory of migration is based on migration theory due to economy dynamics, where individuals migrate across the international boarders for better economic opportunities than they are provided in their usual country of residence. Although, this theory is criticized by other alternative approaches, this theory is still dominant in economic theories (Castles and Miller 2009, p.21-22).

The concept of this theory mainly depends upon the economic “Push” and “Pull” factors affecting migration. Poverty, social and political imbalance, geographic and demographic hurdles etc. in the place of origin of an individual are said to be push factors causing migration and the economic opportunities, high standard of living, social security etc. are said to be the pull factors of the destination where an individual is likely to migrate. In this migration process individuals are said to invest their human capital on migration and they expect a high return from it (Castles and Miller 2009, p.22). The brain drain from the underdeveloped countries to the developed countries explains the idea (Castles and Miller 2009, p.96-98). An individual migrates from the country of origin to a foreign destination investing his resources available with him if he is convinced to get a better return from his investment (Castles and Miller, p.22-25).

In the field of migration theories this neoclassical theory makes a different understanding of migration ethics with some assumptions and findings. Economic dynamics being the main cause of migration as recognized by this theory, it is assumed that a person migrates from his place of origin with his individual decision to migrate. To get high economic opportunities a person first makes a search of his destination and gets a perfect knowledge of economic and social opportunities he is going to receive in the destination country. He is likely to migrate from a dense area to sparsely populated area in search of opportunities. In this way the migration of low income people towards the destination of high income areas in a long term leads to the equalization of wages and opportunities in the underdeveloped countries with the developed countries (Castles and Miller 2009, p.22-25).

So this migration process is followed by a number of steps which an individual follows before making a decision of migration. He first searches the probable destinations and makes a thorough study if the immigration policies of the destination country are in his favor or not. He makes a comparison of all possible destinations and chooses one. He now thinks weather it is profitable to invest in migration to the destination or it is more profitable not to leave the place of origin. If he finds out that the migration can be profitable then he is likely to move towards the destination. So, this decision becomes his personal decision and it is clearly affected by the economic causes and this type of migration becomes individualistic and ahistorical (Castles and Miller 2009, p.22-27).

Although, neoclassical theory is dominant theory among the economic theories, it is often challenged by various social scientists with an alternative approach. In other words this theory has many limitations. The decision of migration among the Asian people is not usually made by individuals instead these decisions are mostly made by the family members, household and sometimes the whole society which is in total contradiction of the assumption of individual decision of the theory. (Castles and Miller 2009, p.28)

Individuals do not have the exact knowledge and do not compare the probable destinations. Algerians mostly migrate to France not to Germany whereas Turks mostly migrate to Germany. So, people do not choose a destination which is profitable but the linkage of the destination clearly affects the decision of individual (Castles and Miller 2009, p.22-24).

The flow of high skilled manpower from the underdeveloped countries to the developed countries does not help in the equalization of opportunities in a long run but it helps to make underdeveloped states to be more dependent on developed countries as they always lack the manpower they need to develop themselves (Castles and Miller 2009, p.140-142).

The free movement of people in free market economy in search of jobs also causes the exploitation of manpower when the supply is higher than the demand in the destination which totally goes against the theory of maximization of wages. This gives rise to black market economy and also raises the human trafficking cases (Stephan and Miller 2009, p.25).

To conclude, economic dynamics is one of the causes of migration of individuals across the international boarder. People tend to leave the place of origin for better opportunities and move towards the areas of high economic possibilities. But economy is not only solo cause of migration. Family ties, cultural ties, immigration policies of the destination country, war, occupation and many other things affect migration which neoclassical theory is unable to recognize. So, although it is a dominant economic theory it is still unable to explain neither the pattern of migration nor the future of it (Castles and Miller 2009, p.21-33).

Bibliography:

Castles, Stephen, and Mark J. Miller. "Theories of Migration." The Age of Migration: International Population Movements in the Modern World. 4th ed. Basingstoke: Palgrave Macmillan, 2009. 21-29. Print.

Castles, Stephen, and Mark J. Miller. "International Migration before 1945." The Age of Migration: International Population Movements in the Modern World. 4th ed. Basingstoke: Palgrave Macmillan, 2009. 79. Print.

Castles, Stephen, and Mark J. Miller. "Migration in the Asia-Pacific Region." The Age of Migration: International Population Movements in the Modern World. 4th ed. Basingstoke: Palgrave Macmillan, 2009. 140-142. Print.