Neoclassical Economic Theory
This is the newest theory of migration and states that the main reason for labor migration is wage difference between two geographic locations. These wage differences are usually linked to geographic labor demand and supply. It can be said that areas with a shortage of labor but an excess of capital have a high relative wage while areas with a high labor supply and a dearth of capital have a low relative wage. Labor tends to flow from low-wage areas to high-wage areas. Often, with this flow of labor comes changes in the sending as well as the receiving country. Neoclassical economic theory is best used to describe transnational migration, because it is not confined by international immigration laws and similar governmental regulations.
Read more about this topic: Human Migration, Theories For Migration For Work in The 21st Century
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