Limitatin of Neo Classical Theory

Topics: Human migration, Developed country, Developing country Pages: 3 (1012 words) Published: December 20, 2012
After world war II, Western Europe started to rebuild its economies. For this they need labour, which they drawn from less developed countries. Since then the volume of international migration has grown and change in characteristic. There are two phases, first phase was from 1945 to early 1970s and 2nd phase from 1970s to late twenty and early twenty first century (Castle and Miller, 2009 p.96). Neoclassical theory explain the causes of migration and its main focus is on economic factors. There are some flaws in neoclassical theory which makes its scope limited. In this essay I will try to explain neoclassical theory with the case of migrant workers from Turkey to Germany. Neoclassical theory of migration

Neoclassical theory of migration explains that individuals migrate due to economic factors. Individual decision of migration is based on logic and calculations that whether staying at home is more beneficial or migrating to another country. Individuals are well aware of the labour market of migrating countries. People decide whether to invest in education, vocational training or in migration, and if wages or salaries are higher in destination countries then they will prefer to migrate. Economic disparities in different regions play major role in flow of migration. In the long run this flow should help to balance the wages in developed and under developed world (Castle and Miller, 2009 p.22).

Germany and Turkey signed a contract for the recruitment of labour on 30th Oct 1961. Germany also contracted with Spain, Italy and Greece but the demand for labour was seeming endless. Hundred of thousand Turks workers were recruited from the remote areas of Turkey. German companies were interested in semi-skilled or unskilled worker for unpopular and poorly paid jobs. At that time none take care that these workers are hardly able to read and write and in future it will be difficult for them to integrate in the society. At the time of recruitment,...
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