Economic consequences of migration (IGNOU/UPSC/STATE EXAMS)
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Movement of people from their home to another city, state or country for a job, shelter or some other reasons is called migration.
Economic causes of migration
Migration impacts the rate of savings and accumulation in an economy. It is held that temporary migrants save a large fraction of their earnings because risk-averse migrants save for their return to a lower and less certain income and because the marginal utility derived from consumption while away from the family is low. But it may only raise the propensity to save temporarily.
Migrants normally gain from migration unless it was not of migrant's own will. The average migrant household enjoys a higher standard than non-migrants who choose to reside without movement and no job opportunities in the region.
Migration also affects the income of the people, both at origin and destination. In the long run the departure of skilled migrants can raise the returns of education and training of those left behind, resulting in greater investment in human capital and higher income. But it may face opposing forces like migration may provide resources to finance better education, but lack of parental presence may lower commitment to schooling.
A major benefit for the source region is the remittances sent by migrants. Migration contributes to India's gross domestic product (GDP). Their ambition and enthusiasm to improve their livelihood help in economic growth. Migration could affect the overall economy of the city through remittances.
Unregulated migration to the metropolitan cities has caused overcrowding. Migrants move to cities and further put pressure on the already stressed infrastructure and services. The rapid population growth results in difficulty to cope with the insufficient infrastructure and needs of the people.
Migration acts as a tool to reduce inequalities and bridge the gap between rich and poor. But unsustainable migration is a threat to countries urban health. What is required is development of rural areas to check massive migration.
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Very good presentation .Thank you.
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