The human capital theory of migration compares the costs of a move to

Question

Quizplus · Accepted Answer

The human capital theory of migration considers the costs of moving, including financial costs and the costs of leaving behind established relationships and personal and cultural ties. It also considers the potential increase in utility levels from a new job. The theory predicts that individuals will migrate when the discounted sum of increased utility levels from each year on the new job exceeds the costs of the move. Therefore, the correct choice is option C, which refers to the discounted sum of increased utility levels from each year on the new job.

The Human Capital Theory of Migration Compares the Costs of a Move