d receiving areas. Among the few research on internal migration, Harttgen & Klasen (2011) shows that internal migration have significant effect to human capital as such that internal migrants attain slightly greater level of human development, life expectancy, education and moreover in income compare to non-migrants. These evidences suggest that internal migration could play important role in improving wellbeing of people as much as international migration do.
Disparity between rural and urban growth leads to considerable number of people to migrate. Rural to urban migration has shaped urbanization. In most populous countries, urban population shows an increasing trend. Among the most populous countries, Indonesia urban population is concentrated with 53 percent people live in urban in 2014 and it is estimated to increase to 71% by 2050 (table 1). This proportion is higher compare to second most populous country, India. Among three sources of urban population growth, which are natural increase, internal migration and transformation of rural into urban, contribution of natural increases shows decline pattern from nearly 70 per cent in the 1960s to 32 percent in the 1990s (UN, 2011). Thus, it can be inferred that internal migration in Indonesia responsible for high urban population growth.
Table 1 World Urbanization and Prospects of Five Most Populous Countries
Source: UN World Urbanization Prospects, 2014
Although internal migration results lower rates of remittance compare to international migration yet other features such as lower cost and risk make internal migration contributes as much as those from international migration to the economic status of household sending migrants. Personal features of remittances and direct transfer to household sending migrants make remittances beneficial to promote human development, reduce poverty and moreover development of migrant sending areas. Transfer of remittances to household sending migrants can be other sources of income that helps to smooth consumption, provide working capital and have a multiplier effect through increase on household spending (Gupta et al, 2009)
However, internal migration from rural to urban areas can also create problem to urban areas. A growing number of urban population can be problems if urban facilities and public infrastructure have not kept pace with it. Pressure on urban areas result in slum formation and other social problems. Rural to urban migration results in an unbalanced distribution of population (Lall et al, 2006), more likelihood of incidences of urban poverty and growing number of slum dwellers that constrained a modern urban functions (Meng & Manning, 2010).
Internal migration in Indonesia characterised by highly geographically mobile population, where almost one in two people migrated at least once across the archipelago (Deb and Seck 2009). Despite the growing number of international remittances in Indonesia, many features of internal migration such as distance, cost and risk and less skilled labour characteristics of Indonesian migrants makes internal migration also favourable. Moreover, it is argued that poorer people are more likely to involve in internal than international migration. Remittances from internal migration between districts and municipalities, rural and urban areas, will benefit poorer people more and much more import
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