Some economic interpretations of migration

Economists have long neglected changes in labour use in the different sectors. They were primarily interested in the 'most growth inducing production factors' of which capital formation was thought to be the most effective. However, the record of groving urban unemployment and growing imbalances in ruralurban income and job opportunities has forced economists to reconsider their rigid adjustment models of efficient allocation of the production factors between sectors leading to, in the end, equal seetoral marginal productivities. This paper provides a description of the changes in the approach and the interpretation of labour transfers between sectors and regions (which is in fact what labour migration is about) in economic development theory. Furthermore the A. determines whether these academic studies have led to a more effective migration policy as pursued by the governments of the underdeveloped countries. Ref