section_path: Contemporary labor migration theories/Relative deprivation theory
section_name: Relative deprivation theory
paragraph_text: Relative deprivation theory
  
  Relative deprivation theory states that awareness of the income difference between neighbours or other households in the migrant-sending community is essential in migration. The incentive to migrate is a lot higher in areas with a high level of economic inequality. In the short run, remittances may increase inequality, but in the long run, they may decrease it. There are two stages of migration for workers: first, they invest in human capital formation, and then they try to capitalise on their investments. In this way, successful migrants may use their new capital to provide better schooling for their children and better homes for their families. Successful high-skilled emigrants may serve as an example for neighbours and potential migrants who hope to achieve that level of success.