The Migration Transition in Asia

Abstract

This theoretical discussion of the migration transition is Asia develops a framework to understand the turning point from labor exporter to labor importer experienced by the Asian NIEs (Hong Kong, Korea, Singapore and Taiwan). The author concludes that the NIEs' demand for labor curve shifted rapidly, primarily due to export-led growth of a labor-intensive character. Because these economies are well integrated, improvements in labor market conditions in individual sectors are transmitted to all workers, discouraging emigration. Despite industry's efforts to mitigate wage increases through labor import, new technology or relocation overseas, the rapidly improving domestic earnings opportunities induced the migration transition.