Economic models asserts that migration rises when wage differentials widens between the host country and the home country. If the host country has better payment terms than the home country, more employees will be lured to move to take advantage of the higher payment.
In a more vibrant framework, especially where the migrations duration is temporary, the number of immigrants in the host country is more than where the immigration duration is unending. However, economics model reveals that when the immigrants’ duration is temporal the optimal migration is low.
Several factors influence the trend and the magnitude of the migration that is experienced between two countries. Other than wage differentials, the existence of employment opportunities has also been considered to influence workers mobility.
When job opportunity and existence of wage disparities are merged, a rigorous migration trend is created that entirely shape the economic output of the affected countries. The other factor that stimulates migration is the existence of technological differences among the various countries that are involved.
Besides income variation and treed trade has been earmarked as one of the factors thank contribute heavily to immigration. Countries with large income propensities are increasingly receiving large amount of immigrants from countries low-income margins. Similarly, more technically advanced country usually operated at full employment while a less developed countries have high unemployment rates. Therefore, one of the two countries, which meet these conditions, experiences high rates of migration.
Due to the erratic nature of immigration, most countries find themselves in a dilemma to contain such movements. Thus, this research project endeavoured considers all the factors that affect migration between Turkey and Germany. In this case, most emigrants move from Turkey to German where wages are relatively higher.
The research sought to obtain the rationale of the following issues.
To determine the constituents of wage differential
To understand the optimal level of migration in a given country
To understand the effects of migration; both to the host country as well as the home country
The research consulted several written materials to obtain the views and observation of economists concerning the issue of wage differential and migration. In addition, the literature review helps to find consistence between their finding and the finding of this research.
History of Migration from Turkey to Germany
The migration was more or less active during the twentieth and early twenty-first centuries. The political changes in Europe were pertaining to the migration rates, especially in the between- and post-war periods; ethnic changes and attitude to ethnic groups was another reason for migration when people were seeking shelter or political asylum. Employment rates and labour shortages became one of the strongest motivations for employees from all over the world to migrate to the countries that were rebuilding their economies in 1950-1960s. Economic differences and wage differentials can be considered another contributing factor to the migration flows (Dustmann, “The European Experience” 215). As such, the major events that influenced the economic and political changes impacted the migration rates from Turkey to Germany.
Though some authors try to trace the roots of the migration from Turkey to German alluding to the colonial migration to the Western Europe (Akgunduz 124), modern trends have reveal change of motivators from need of maiden land to wage differentials. Djajic (99) contends that wage differentials are influenced by variation in factor prices. A higher factor price leads to a low return on capital and therefore low wage rates.
On the other hand, when the country has low factor prices, the return on capital is high and therefore the stimulating international migration. Another section of economist claims that recruitment fee also influences the bearing of the immigration. Higher recruitment fess adds to the factor cost and it negatively affects the amount of wage offered thus discouraging migration (Massey and Taylor). However, this principle is only applicable under free trade where the country does not practice protectionism.
Migration and Income
International migration is also influenced by the level of income in additional to wage differentials. Low income from the sending country motivates locals to aspire to go for better incomes outside the country (Faini & De Melo 49).
One of the reasons for migration was the employment (Eickelman and Piscatori 153). The inclusion of income factor obscures the relationship between migration and trade liberalization. For instance, income below a certain thresholds in the home country complements both trade liberalization and migrations. This is because trade liberalization and migration is liable to promote income in the home country.
Once income is augmented to a particular threshold, migration rate recedes or it is entirely brought to a stop. The rationale behind is the fact that majority of the people prefer working in their native countries. Therefore, trade liberalization and migration are either complements or substitutes in the upper income threshold (Faini and De Melo 50).
Technological differences have also been cited as one of the main catalyst of international migrations. Djajic illustrates that a country that is more technically advanced relieves most of its workers from their daily jobs as they are misplaced by machinery (99). The machine usage lowers the pressure on wages leading to low hourly wages; the affected individuals are easily by hire wages elsewhere (Djajic 99).
Massey and Taylor dispel this assumption by arguing that international wage trends are not easily predictable and therefore not easily applicable (10). The internal operations of a country economic factor are not readily predictable due to the dynamism assumed by many factors that influence wage rates. natural intuition provide that countries which are more industrialized have high national income and also high wage rate, thus displaced employees find it difficult to cope with low wages than offered in the local country.
Education can be considered another factor that contributed greatly to the growth of migration rates between Turkey and Germany. New educational institutions in Europe and increasing importance of the education in Turkey made the flow of students from Turkey into Europe and, namely, into Germany growing.
As reported in the study by Sunata, the European governments in 1990s “facilitate legal regulations, such as student visas and work permits as well as the probability of grants and loans” (187). This shows that the situation was changing from time to time and the educational opportunities became open and more affordable for foreign students abroad, especially regarding the legal regulations adapted in many European countries such as Germany.
Economies of Scales
Another notable factor that influences international migration is the economics of scale. Djajic argues that a country that constantly returns to scale generates more demand compared to countries with diminishing returns to scale (100). Hence, increased pull-demand for job is increased in countries that enjoy economies scale.
Moreover, the ability of the country to expand its operation increases that is generated causes increased demand for labour, which by extension causes immigration. These countries keep low production costs that allow firms to maintain higher wages.
On the other hand, economic models assume that economies of scale rarely exist in the end due to entrance of new firms. This may reduce the duration of immigration, hence leading to a low immigration optimal. Nonetheless, where immigration duration is permanent the optimal level of migration is usually high.
Effects of Migration to the Economy
Although most scholars’ associate migration to brains drain but it has been found out that both the host countries and the home country benefits a great deal from employee mobility. Hatton asserts that high economic growth is often experience where the country obtains more work force to utilize the already existing resources (4).
On the other hand, the home country benefits from the resources and finances, which are sent home by the emigrants. Conversely, most host countries benefit mostly when the large constituent of the immigrants are skilled with ability to operate the machinery already installed.
Djajic contends that immigrants’ remittances assume a type of insurance premium that furnish the risks associated with migration and therefore they feel the welfare of their family is well catered for (254). He further asserts that remittances form an integral part of the decision making on the part of the immigrants, once the remittances is able to cater for the welfare of the entire family, immigration decision is reached with ease.
The report was prepared after based on information gathered from secondary sources. These sources include books, and internet reports, which were done on this area. From varied literature, the researcher sieved and collected relevant data utilized for this report. The research covers the migration movements from Turkey to Germany.
According to the ILO records, Germany has a higher wage rate compared to Turkey. Moreover, Germany is technically more developed than Turkey thus having a higher demand for skilled labour. With this distinct parity, most skilled personnel from Turkey are attracted by the lucrative opportunity in Germany but not available in Turkey.
The data on the two countries that was used in this report was entirely collected from internet and previous reports on these areas available in books. This information was collected from library books, journals, and internet. The ensuing results and discussion was purely based on the findings from these sources.
Results and Discussion
This section comprises discussions that emanates from the information that was collected from various sources. The discussion strives to find correlation of the report and the previous findings from secondary sources.
Migration duration. Table showing the number of emigrants return (Dustmann, “Wage Differentials” 239).