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1

Introduction

Background and relevance of the topic

In the viewpoint of Van de Broeck (1996), migration is seen as a way of survival of human  beings.  When  resource  of  the  origin  location  is  hardly  to  satisfy  human's  demand, people start to migrate from their homeland to another place for survival. They migrate with hoping that new destination will give them better job and therefore improved living standard.

Migration especially spontaneous migration from rural to urban has pervasive effects throughout   economies.   In   one   side,   it   seems   to   have   positive   impact   on   economy. Competition and then efficiency in urban labour market increases due to mass labours from   rural  areas.  Additionally,  remittances  from  migrants  are  important  sources  for  their  origin places to develop. In the other side, migration also leads to many negative impact regarding

to   labour   market   (urban   unemployment…),   environment   pollution,   and   provision   of community services and facilities that even overburden to provide to residents adequately and social evils…

Hence, the migrant's characteristics worth researching because it will provide much more  useful  information  to  answer  question  why  and  for  what  they  migrate.  The  more migration is studied the more migration, especially spontaneous migration will be controlled effectively and economically.

In Vietnam, VLSS1992/1993 shows that 23 percent of Vietnamese adults live in place other  than  the  place  where  they  born  (Lucas,  2000).  In  addition,  when  the  administrative control has been more and more released since 1990, especially the food subsidy mechanism  was removed, internal migration has been increasing (Haughton, 1994).

Hanoi  and  Ho  Chi  Minh  City  are  the  two  biggest  cities  in  Vietnam.  The  unequal development  soars  between  rural  and  urban  areas  in  terms  of  both  economic  and  social effects. As a result, an increasing number of rural people move to these cities. It has put a

fierce pressure on all fields. Number of migrants to Hanoi is an average of 22,000 people per     year (since 1986) (CPS, 1997). This is five times higher than the number of people moving

out. It is a same picture in Ho Chi Minh City. During twenty years (1976 to 1996), there are 900,000 people migrating to this city in comparison with 4.9 million of its population (IER, 1997).

Migration  is  interested  in  by  Vietnam  Government  and  UNDP.  A  project  titled "Strengthening  the  Capacity  for  internal  migration  Policy  and  development  in  Vietnam" (VIE95/004)  was  carried  by  the  Department  of  Resettlement  and  Development  of  New Economic  Zones  in  MARD  under  the  funding  of  UNDP.  Of  which,  the  two  reports  on


 

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spontaneous migration to Hanoi and Ho Chi Minh City had shown an overview of migration during the period of 10 years (since 1986).

This  thesis  will,  therefore,  try  to  provide  an  in-depth  analysis  of  characteristics  of migrant  to  Hanoi  and  Ho  Chi  Minh  City  before  the  move  and  then,  be  expected  to recommend some policy implication basing on this issue.

Research questions

The central thesis research question is:What are the migrant's characteristics who moved to Hanoi and Ho Chi Minh City?

To accomplish this, specific research questions are:

1.   How can rural-urban migration be understood? What are the migrant's characteristics in theories?

2.   What are characteristics of migrants and reasons for them to migrate to Hanoi and Ho Chi Minh City?

3.   What are relation between these characteristics and migrant's income? and

4.   What are policy implications for the issues of rural-urban migration drawn from the analysis of the migrant's characteristics?

Structure of the thesis

Introduction

Chapter  I:  Literature  reviewTheories,  concepts  and  definitions  related  to  internal migration, characteristics of migrant will be the main focus of this chapter.

Chapter II: Spontaneous rural migration to Hanoi and Ho Chi Minh City. Focus is placed  on  migrants’  characteristics,  migration  decision-making  process  and  preparation before the move.

Chapter III: Migrant income analyses. In this chapter, factor analyses will be used to point out the whole picture of income and all migrant's characteristics with correlation among them and then, income model is used to test these relations.

Chapter IV: Conclusions and Policy Recommendations.


 

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Chapter 1: Literature review

The focus of this chapter has been on three fundamental questions: (i) Why do people migrate?; (ii) What are the influential factors on migration decision?; and then (iii) What are the migrant's characteristics?

I.  Definition of migration. 1. Definition of migration.

Migration is generally viewed as a movement of people from one place to another. However, various authors emphasize different aspects of the movement and provide a more concise definition of migration.

A precise definition of migration  is  provided  by  United  Nations  (1970).  Migrant  is defined " a person who has changed his usual place of residence from one migration defining area to another… during (a given) migration interval".

For Vietnam, migration is the movement of people from one place to another that is

from  one  to  another  district,  province  or  country  for  a  period  of  a  year  or  more  (Vietnam Committee 1992, 1994) (Haughton, 1995, pp. 183-184).

2. Types of migration.

Internal migration is one occurring inside country's boundary. It is typically classified as organized or unorganized, legal or illegal depending on the sponsor of migration.

Basing  on  the  place  of  origin  and  destination  four  types  of  internal  migration  is identifies: Rural - rural; Rural-urban; Urban-urban; and Urban - rural migration.

Finally,  depending  on  the  time  and  duration  of  migration,  internal  migration  is classified into regular or seasonal migration, temporary or permanent migration.

II.  Theories of migration.

1. Lee's General Theory of Migration.

According to Lee, an individual’s migration decision is normally influenced by four distinctive  set  of  factors:  Factors  associated  with  the  area  of  origin  and  destination; Intervening obstacles and Personal factors

There are many factors affecting different people in different ways in both origin and destination  areas.  Some  of  factors  can  attract  people  moving  to  while  some  others  tend  to repel people and some are neutral. In each factor, it has positive impacts for someone but it is negative  for  others.  It  is  also  true  to  intervening  factors  occurring  during  the  movement process.  Finally,  personal  sensitivities,  awareness  of  conditions  and  ability  to  evaluate  the


 

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situation  of  origin  and  destination  depend,  among  other  things,  on  the  migrant’s  extent  of personal networks as well as his (her) ability to access information.

Critical  point  to  Lee’s  argument  is  the  differences  played  by  the  same  factors  on different individuals. Depending on the each individual preference, personality and attitudes toward change, responses may vary from individual to individual.

2. Migration in the Lewis’ Model

In  Lewis’s  model,  real  wage  differential  is  presented  the  simplest  explanation  for rural-urban migration. There consists of two sectors in the economy: The traditional sector is mainly agriculture with low productivity, low investment in capital and surplus labour while   the modern one is the industrial sector and characterized with high productivity, high level of reinvestment and rising labour demand.

The main idea is that much of the labour used on the land having zero or negative  fghgmjtyrmfghfdal product. Thus, if labour moves from the non-capitalist to the capitalist sector, there    will  be  little  or  no  impact  on  agriculture  output.  With  high  level  of  reinvestment,  modern sector expands rapidly which in turn increases the demand for labour. To attract labour from traditional sector, wages in the modern sector have to be higher than that of the traditional. Abundant labour flows from the traditional to the modern sectors. This flow will continue

until surplus labour is absorbed and labour supply schedule ceases to be perfectly elastic.

Lewis’s model of migration has been criticized for its unrealistic assumptions: (i) the model assumes implicitly that the creation of employment is proportional to the reinvestment;  (ii)  the  assumption  of  zero  fghgmjtyrmfghfdal  product  of  labour  in  the  traditional  sectors  has  been questioned; (iii) labour is "unlimited" in the sense that the supply curve of labour is infinitely elastic at the ruling of wage but in fact it is upward sloping.

3. Harris-Todaro's model of Migration:

In   Harris-Todaro’s   model,   migration   is   viewed   as   an   economic   phenomenon motivated by the rural-urban expected income differentials.

The basis assumptions being made in the model are: (i) The economy is divided into   two sectors: the urban specializes in industrial activities while the rural does in agriculture

and characterized by on farm labour surplus; (ii) Rural labour market is a competitive and     rural   wages   reflect   labor’s   fghgmjtyrmfghfdal   product   in   agriculture;   (iii)   Urban   wages   are institutionally  determined  and  they  are  higher  than  the  market  clearing  wages  under  a competitive  labour  market;  and  (iv)  total  urban  force  labour  consists  of  permanent  urban wage-earning workers plus the available supply of rural migrants. In that context, whenever    the demand of labour is lower than the supply, a periodic random job selection process exits.


 

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The number of rural migrants to the urban centers in time period t, (Mt) is assumed to be a positive function of rural-urban wage differential (Wu - Wr)

Mt = h (pWu - Wr)

where h = the response rate of potential migrants and p = probability of finding a job

Rural-urban migration will continue as long as W*u exceeds Wr. and stop when W*u = Wr

Harris-Todaro’s model suffers from two main shortcomings. Firstly, informal sector is  not  regarded  in  the  model.  Secondly,  Harris-Todaro’s  model  emphasizes  only  the economic factors and non-economic factors are ignored.

4. Migration as an investment in human capital

Migration is  investigated  in  the  context  of  microeconomics  and  individual  decision making.  An  individual  chooses  to  move  to  where  she  can  be  most  productive  given  her human capital. Thus, migration to a higher paying job is a human investment because people sacrifice  present  benefit  for  higher  future  earnings.  An  individual  tends  to  migrate  if  the present  value  of  the  expected  earnings  exceeds  the  present  value  of  the  investment  costs (transportation expense, forgone income, psychic costs, the loss of seniority benefits…)

In addition to the net present value of future earnings, migration decisions are also influenced by a host of other factors including age of individual, family factors, the level of education, distance and the prevailing unemployment rate.

Theory  of  migration  as  investment  in  human  capital  refers  not  only  to  economic factor but also to non-economic factors (i.e. education, family influence, and social ties…). These non-economic factors are not given any attention in Harris and Todaro’s model.

5. The ‘new’ economics of migration.

This  new  approach  is  that  migration  decision  is  made  by  a  group  of  related individuals- families or households. People act collectively to maximize expected income and minimize risk and loosen constraints associated with a variety of market failures.

Moreover, migration provides the rational individual with an opportunity to overcome constraints imposed by the premature, poorly- serviced capital market in rural areas.

In  addition,  the  ‘Relative  Deprivation  Approach’  is  used  to  analyze  the  problem  of rural-urban migration in developing countries. Motivation moving from A to B is strong if

the  individual’s  deprivation  decreases and  the  satisfaction  increases.  People  may  decide  to migrate even through there is no wage differential in the two places.

Finally, migration can be seen as a risk diversification process. Families may attempt to spread their risk by sending some of their members to various other locations to minimize the exposure of the household to economic downturn (Lucas, 2000, p.61).


 

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6. The Network theory of migration

Migrant   networks   are   sets   of   interpersonal   ties   that   connect   migrants,   former migrants, and non-migrants in origin and destination areas through ties of kinship, friendship,  and shared community origin. The probability of migration increases because the costs and    risks of movement are lowered and thus the expected net returns to migration goes up.

Declining costs: Potential costs of migration are substantially lowered for friends and relatives who migrate later because social ties in the destination area has been created.

Declining risks: Networks also make migration extremely attractive as a strategy forrisk diversification. When migrant networks are well developed, employment in destination place is easier to seize for the new comer.

In short, characteristics of migrant are referred in all migration theories. The portrait of migrant is fairly uniform in terms of age, gender, educational level, economic status and network of migrants. They are summarized as follow:

Age selectivity: Migrants are mainly young people with the ages from 15 to 24.

Gender  selectivity:  migration  is  dominated  by  male,  especially  in  long  distance  of moving.  However,  the  proportion  of  female  migrants  has  increased  as  long  as  their educational opportunities have expanded in recent years.

Educational selectivity: there is a positive correlation between educational attainment and migration. Education may raise the expected rural-urban income differential and increase the probability of getting jobs in the modern sector.

Economic selectivity: For many years, the largest percentage of urban in-migrants waspoor,  landless,  and  unskilled  individuals.  However,  migrants  have  recently  seem  to  come from all socio-economic stratas. The number of wealthy migrants increases.

Network   selectivity:   The   discussion   of   migrant   characteristics   should   include observation that migrants do not come equally from all areas. This is a result of migration network. Most of migrants have some relations with urban residents.

Iii.  Empirical study on migration

In conclusion, migration with definition of change in usual residence of one person

during  a  given  migration  interval,  is  a  common  economic  phenomenon  in  most  countries, especially  in  developing  ones.  Generally  accepted  motivations  of  migration  are  economic factors  such  as  income  differential  between  origin  and  destination  areas,  employment opportunities…and  non-economic  factors  such  as  getting  higher  education  level,  job  skill, household risk diversification. Moreover, migration is a selective process.


 

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chapter 2: Spontaneous migration to Hanoi and Ho Chi Minh City.

This  chapter  focuses  on  current  spontaneous  migration  to  the  two  biggest  cities: Hanoi and Ho Chi Minh City with the outline as follows: Section I provides an overview of migration  in  Vietnam.  Section  II  describes  the  main  socio-economic  characteristics  of migrants. The chapter ends with some concluding remarks.

I.  Overview of migration in Vietnam. 1. Socio-economic development

After  the  reunification  (1975),  the  whole  economy  was  standardized  under  the existing  model  in  the  North.  The  government  focused  on  restructuring  and  restoring  the economy. Industries were considered as key sector.

GDP  composition  by  sector  remained  stable  in  the  period  1975-1980.  Due  to  the conflict  with  Cambodia  and  with  China  along  the  borders  in  the  North,  the  Vietnamese economy  had  been  in  recession  (UN  1993).  The  economy  recovered  gradually  in  the following   quinquennium.   Since   the   Sixth   Congress   in   December   1986,   government implemented  a  doi  moi-renovation  in  order  to  shift  from  planned  to  market-oriented economy. However the economy returned deeply stagnating because of many reasons.

Virtual  reform,  called  "Big  Bang",  came  in  March  1989  with  series  of  radical changes. Most of the remains of command economy were swept away formally (Houghton, 1995).   Private   sector   was   highly   encouraged.   Services   sector   and   agriculture   grew surprisingly.  Meanwhile  industrial  output  grew  by  just  2%  in  1989.  It  caused  of  cutting government's subsidy for SOEs that were mainly in industrial sector (Haughton, 1995, p.9).

2. Overview of migration in Vietnam.

After  the  reunification  of  the  country  in  1975,  rural  to  rural  migration  pattern  was encouraged  by  the  government  in  order  to  redistribute  population.  Another  pattern  of migration in Vietnam has been urban-rural migration. After the reunification, a large number

of southern urban residents were repatriated to their home villages and to the NEZs in the   Central  Highland  provinces.  Lack  of  adequate  physical  and  social  infrastructure  combined with low income in NEZs resulted in the return of many migrants. Rural-urban migration did  exist in Vietnam but was strictly controlled before doi moi (UN, 1993; Nguyen et al, 1999).  There was no free migration because of the subsidy system. Without the permission, migrants could hardly obtained most of the necessities for living (UNDP, 1998).


 

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More  reforms  after  doi  moi  were  implemented  in  the  later  half  of  1980s  and  early 1990. These came to affect the labor market and migration flows and deepened the regional inequality. Therefore, as people become more aware of the opportunities, they try to move to urban place in the hope of seeking a better life.

Migration pattern has changed. Government has invested less in organized migration   to  NEZs.  People  continue  to  move  on  their  own  initiative.  As  a  result,  free  and  illegal migrants go up. Hanoi and Ho Chi Minh City are the two biggest economic centers so that   they have attracted a great number of free migrants especially after the Resolution 7.

Recently,   rural-urban   migration   flow   has   been   the   dominant   form   of   internal migration.  However,  the  real  number  must  be  much  higher  because  of  large  number  of seasonal migrants who are not recorded in official statistics.

II.  Migration to Hanoi and Ho Chi Minh City

Analyses in the thesis is mainly based on data collected from the two surveys named

"Spontaneous  migration  to  Hanoi  and  Ho  Chi  Minh  City"  implemented  by  CPI  and  IER under the project VIE95/004 with the sponsor of UNDP.

II.1.  Demographic characteristics of migrants 1. Age, sex ratio and marital status.

The  sub-sample  of  seasonal  migrant  in  Ho  Chi  Minh  City  will  be  discarded  in  the following discussion due to too small sample (29).

Migrants  are  young  people.  Half  of  them  are  single.  Higher  sex  ratio  of  migrants compared  to  non-migrants  proves  that  men  migrate  more  than  women.  However,  these changes among types of migration and are different between Hanoi and Ho Chi Minh City.

2. Education and professional skill.

a.   Education

At  the  time  of  moving,  regular  migrant  completed  lower  secondary  school.  The seasonal's is lower. However, due to larger proportion of seasonal migrant, average education level  in  Hanoi  survey  is  not  as  high  as  that  of  Ho  Chi  Minh  City.  Non-migrant  is  better educated than migrant in Hanoi. But this is not true for the case of Ho Chi Minh City.

b. Professional and technical skill

Most of people have no professional and technical skills when they migrate to city. The regular has better skill than the seasonal and male is better than female. Skill of non- migrant is higher than that of migrants in Hanoi survey. Similar to the case of Ho Chi Minh City but the gap is smaller.

In short, basing on different features of both origin and destination places, migrants to Hanoi have higher education and professional skill than those of Ho Chi Minh City.

Table 1: Age, sex ratio and marital status

Regular migrant

Seasonal migrant

Non-migrants

Hanoi

HCMC

Hanoi

HCMC

Hanoi

HCMC

I. Age group (%) From 0 to 14

11.4

6.9

From 15 to 19

26.0

30.4

8.5

13.8

15.4

15.5

From 20 to 29

31.7

38.6

53.0

37.9

16.9

27.8

From 30 to 39

15.4

13.8

26.3

24.1

24.5

26.6

From 40 to 49

8.0

5.1

6.0

6.9

18.1

12.7

From 50 to 59

4.3

3.1

3.6