ABSTRACT
This chapter examines four processes important to understanding the relationship between migration and the global economy. It considers the relationship between migration and the labor market of host nations. The classical economic model of labor markets suggests that an inflow of immigrants should lower the wages of native workers and create unemployment. The chapter describes the concept of ethnic enclaves and ethnic niches. Ethnic enclaves are places where there is spatial concentration of ethnic businesses where co-ethnic residents are employed. Ethic niches can be beneficial since they offer migrants increased access to certain jobs, training opportunities, and protection from racial discrimination. The chapter talks about the migrant who often move from rural to urban areas. It discusses the migrant who move for economic reasons often send part of their earnings back home to family, friends, and their community. The chapter analyzes the nature and effect of remittances for less developed nations.
