| This paper presents a model of migration, using male employment and migration histories from the 1988 Malaysian Family Life Survey (MFLS). The model can be regarded as reduced-form in nature, which represents myopic decision. The econometric model draws on Lee's (1983) general two-step correction technique which have been empirically applied in Falaris's (1987, 1988).;There are two main statistical findings: (1) preference for higher mean earning and lower variability of earnings tends to stimulate rural-to-urban migration in the direction of the largest and most urbanized districts, (2) Malaysians also are shown to dislike urban locations. Thus, a simple dichotomy cannot explain the direction of migration in Peninsular Malaysia (Baydar, White, Simkins, and Babakol (1990)).;In Chapters 1 and 2, the Malaysian setting is described to provide a basis for understanding employment conditions and migration. In Chapters 3 and 4, descriptive statistics and a review of the contemporary issues are presented. The econometric specification and estimates of the model is presented in Chapters 5 and 6. In Chapter 7, I examine possible extensions of my model and draw final conclusions.;From an economic point of view, migration is the result of decisions based upon a comparison of locational differences in expected earnings (Harris and Todaro (1976), and Schultz (1982)). This thesis develops a migration model that considers not only mean earning differentials, but also differentials in the variability of earning. Moreover, I reinterpret the roles of urbanization in individual's migration decisions. |
