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Adam Smith on migration

Daniel Rauhut


Adam Smith considered poverty and unemployment as push factors for migration and wages high enough to provide for a worker and his family as a pull factor. Migration as a free mobility of labour leads to an optimal allocation of the factor commodity labour as well as changes of employment which necessary to equalise wages between different geographical entities. The consequences are not only promoting economic growth and prosperity, but also reducing poverty. Smith has no contemporary empirical support for his theory.


migration theory; wages; unemployment; poverty

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