This essay is basically a literature review. The main point can be summarized quite briefly: existing evidence about migration from Central America and the Caribbean to the US confirms each and every one of the theories of migration reviewed in Massey et al’s previous article. As the authors put it, “each model received at least some empirical support, suggesting that each theory captures an element of truth.” The main problem is that some of the theories have not been subject to much testing.
For the authors’ synthesized “story” of migration, see pp. 740-741.
Neoclassical economics
The effects of wage differentials between the sending and receiving
country on migration have been extensively studied, especially in the cases
of Mexico and Puerto Rico. The general finding is that relative wages
are a significant predictor of migration. However, they only explain
part of the variance. Further, employment differentials are often
more significant than wage differentials.
New economics of migration
Evidence from Mexico supports the tenets of the new economics.
Remittances from migrants to the US are often used for investment, suggesting
that migration is a way to circumvent imperfect credit markets and to manage
risk. Also, relative deprivation is found to be a significant predictor
of migration abroad (but not internal migration).
Segmented labor market theory
Studies show that migrants usually wind up in the secondary sector,
as segmented labor market theory predicts. In cities with large immigrant
populations there is a third sector: the ethnic enclave, where workers
can earn greater returns to skill and experience than in the secondary
sector. (The big winners in the enclave economy, however, are the
entrepreneurs.) Mexican farm labor cannot be regarded as an ethnic
enclave because the workers are merely exploited.
Contrary to the predictions of segmented labor market theory, the demand
for low-wage labor in receiving countries is usually found to have less
explanatory power than conditions in the sending country.
World systems theory
A number of the predictions of world systems theory are confirmed by
evidence.
Cumulative causation: how do migration incentives change over time?