The relationship between rural-urban migration, household income and unemployment: Malaysia case study

• Main Authors: Hussain, Nor Ermawati, Abdullah, Norehan, Abdullah, Hussin
• Format: Article
• Language: English
• Published: ARC Publications 2014
• Subjects: HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/17325/1/IJMSR%2017-24.pdf; http://repo.uum.edu.my/17325/; https://www.arcjournals.org/pdfs/ijmsr/v2-i8/3.pdf
• Institution: Universiti Utara Malaysia

Internal migration is a key mechanism for the adjustment of regional economies, particularly when other devices proven fail.However, these processes have a highly factors of that specification complex economic, social, demographics, environmental, etc. Importance of internal migration, the 2009 World Development Report highlights that successfully economies are those that have the high density, mobility and integration.Migration is common element in most societies of population growth, so the scale of movements in developing countries is that the urban population may have the undesirable effects on poverty and development. Migration has come to consider rural-urban migration as a "major factor that contributed to these phenomenon in any urban and the excess of labor force directly exacerbate the unemployment problems in the city is serious" .Beyond the cross-border migration, internal migration, especially from rural to urban areas has been a key driver in the economic development of Malaysia.In 1970, more than 70% of the population lived in rural areas.By 2008, this number was reduced by half to around 35%. During the same period, the gap of urban and rural income has been reduced from a ratio of 1:2.1 to 1:1.8.Thus, the larger urbanization has contributed to the increasing average revenue and to improve quality of life. So, this paper provides a cursory of the literature examining to investigate the relationship between rural and urban migration, household income and unemployment in Malaysia by using data from 1980 to 2011.By using time series data, it has been found that migration is positively influenced by level of household income and negatively influenced by unemployment rate for rural and urban migration in Malaysia.Johansen co-integration, vector error correction model and granger causality test are employed to analyze the data.