Reasons for Foreign Migration - Coursework Example

 Neo-Classical economics always focus on differentials in wages and employment conditions between countries. In this group of economies, there exists a certain types of theories that try to elaborate on international migration. The argument behind foreign migration is that neoclassical economics has greatly shaped the thinking and perceptions of the immigrant towards immigration policy (Massey et al 437). Since the international wages of workers are caused by differences in wage war rates between countries, the immigrants have no otherwise other than to go and work where there are considerable remunerations.

The elimination of wage differentials will bring the movement of labor and migration will not occur the in the absence of such differentials. This problem only needs to be sorted out in each and every event. This theoretical view varies in different countries and governments must seek to understand different variables that will help in eliminating wage differences that cause migration.

International flows of human capital in the case of highly skilled workers who seek diversity and would wish to work in countries whose estimates are slowly rising. This is usually done with the intent of establishing various factors of migration that may be more difficult than that of unskilled workers.

Labor markets are a special kind of market where the primary mechanisms through the international flows of labor are induced (Massey et al 437). Other markets lack this special and accommodating feature. Lastly, a lasting solution to this foreign migration is for the Governments in charge to influence the labor markets by sending or receiving countries.

Dual Labour market theory - Although neoclassical human capital theory and the new economics of migration can direct one to a divergent conclusion about the origin and nature of international migration, both are essentially micro-level decision models. Causation is cumulative in the fact that each act of migration alters the social context in which subsequent migration decisions are made, typically in ways that make additional movement more likely.

This principle was proposed by Herbert A. Simon, who posited that bounded rationality is an alternative basis for the mathematical modeling of decision-making, as used in economics, political science, and other related disciplines. This principle complements rationality as an optimization that views decision-making as a fully rational process of finding an optimal choice given the information is availed at the right time (Massey et al 457).

Simon uses the analogy of a pair of scissors, where one blade represents the cognitive limitations of actual humans and the other structures of the environment which he uses to explain the relationship between the consumption of public goods and its contribution to tax revenue for the foreign-born population that he notes is usually high as compared to the native-bornMassey et al 464).