This paper examines the costs and returns of human migration, focusing on how migration functions as a resource allocation mechanism in an economy. The author argues that while migration is often seen as a response to income differentials, it is not necessarily efficient in correcting these disparities. The paper identifies both public and private costs of migration, including monetary and non-monetary expenses, and explores the returns to migration in terms of increased earnings and consumption satisfaction. It also discusses the role of occupational composition in earnings differentials and the importance of considering both private and social costs and returns. The author emphasizes that migration involves significant non-monetary costs, such as the psychic costs of changing one's environment, which are not easily quantifiable. The paper also highlights the importance of age in migration patterns, noting that older migrants may face different challenges and opportunities compared to younger migrants. The author concludes that migration should be viewed as an investment in human capital, with returns that depend on factors such as occupation, age, and the availability of alternative opportunities. The paper underscores the need for further research to better understand the complexities of migration and its impact on resource allocation and income differentials.This paper examines the costs and returns of human migration, focusing on how migration functions as a resource allocation mechanism in an economy. The author argues that while migration is often seen as a response to income differentials, it is not necessarily efficient in correcting these disparities. The paper identifies both public and private costs of migration, including monetary and non-monetary expenses, and explores the returns to migration in terms of increased earnings and consumption satisfaction. It also discusses the role of occupational composition in earnings differentials and the importance of considering both private and social costs and returns. The author emphasizes that migration involves significant non-monetary costs, such as the psychic costs of changing one's environment, which are not easily quantifiable. The paper also highlights the importance of age in migration patterns, noting that older migrants may face different challenges and opportunities compared to younger migrants. The author concludes that migration should be viewed as an investment in human capital, with returns that depend on factors such as occupation, age, and the availability of alternative opportunities. The paper underscores the need for further research to better understand the complexities of migration and its impact on resource allocation and income differentials.