section_path: Contemporary labor migration theories/New economics of labor migration
section_name: New economics of labor migration
paragraph_text: New economics of labor migration
  
  This theory states that migration flows and patterns cannot be explained solely at the level of individual workers and their economic incentives but that wider social entities must also be considered. One such social entity is the household. Migration can be viewed as a result of risk aversion from a household that has insufficient income. In this case, the household needs extra capital that can be achieved through remittances sent back by family members who participate in migrant labour abroad. These remittances can also have a broader effect on the economy of the sending country as a whole as they bring in capital. Recent research has examined a decline in US interstate migration from 1991 to 2011, theorising that the reduced interstate migration is due to a decline in the geographic specificity of occupations and an increase in workers' ability to learn about other locations before moving there, through both information technology and inexpensive travel. Other researchers find that the location-specific nature of housing is more important than moving costs in determining labour reallocation.