The new theory of migration is based on the fact that migration is mainly a consequence of a lack of labor in developed countries. Such countries then move to developing countries to tap the excess skilled labor, which is made easier by the high wages offered in these developed countries as opposed to the earnings from the developing nations. However, the developing countries have tightened the conditions and the policies to allow migration. This is to curb the influx of people from other countries.
The social-capital migration theory is based on the existing migrant networks and the institutions that support the migrants. With the initial migration that has occurred, the rest of the migration is out of the control of the authorities due to the social networks that have been formed by the immigrants. The people, who migrate, other than the initial lot, do not have the required skills to go serve the receiving nation, and after a certain time, the migration becomes cumulative.
The characteristic of the new economic theory that migration is caused by lack of employment in the host countries caused a huge number of people to migrate into North America, and they mainly moved there to occupy vacant jobs. Most of the people who migrated into this region were skilled individuals searching for good-paying jobs to offer them social security. Due to the inability of the host countries to offer these individuals well-paying jobs, they migrate into North America and secure themselves jobs mainly in the private sector. There is a rise in the wages being paid in such jobs than in the poor developing countries. This results in the brain drain of the sending nation.
The migration in the Gulf Region is mainly made possible by the liberal labor immigration rules and the lax in enforcing them. Most people migrate into the Gulf Region due to the availability of labor there, and the private sector encourages them by offering them higher income. However, the private sector benefits from cheaper labor as the wages it offers are lower than the prevailing market rates.
The social-capital theory explains migration in these two places to some extent because the migration of an individual into a certain region makes it easier for the rest of the household to follow him or her. There is also the existence of the networks that are created by the rich countries as they try to increase the amount of capital in the developing countries. The links facilitate labor movement to North America and the Gulf Regions.