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Rural-to-urban migration, human capital, and agglomeration
Land-Stadt-Migration, Humankapital und Agglomeration
[journal article]
Abstract A new general-equilibrium model that links together rural-to-urban migration, the externality effect of the average level of human capital, and agglomeration economies shows that in developing countries, unrestricted rural-to-urban migration reduces the average income of both rural and urban dweller... view more
A new general-equilibrium model that links together rural-to-urban migration, the externality effect of the average level of human capital, and agglomeration economies shows that in developing countries, unrestricted rural-to-urban migration reduces the average income of both rural and urban dwellers in equilibrium. Various measures aimed at curtailing rural-to-urban migration by unskilled workers can lead to a Pareto improvement for both the urban and rural dwellers. In addition, the government can raise social welfare by reducing the migration of skilled workers to the city. Moreover, without a restriction on rural-to-urban migration, a government's efforts to increase educational expenditure and thereby the number of skilled workers may not increase wage rates in the rural or urban areas.... view less
Classification
Migration, Sociology of Migration
Political Economy
Economic Policy
Free Keywords
Rural-to-urban migration; The externality effect of the average level of human capital; Agglomeration economies; Public policies; B12; H21; O15; O18; R13; R23
Document language
English
Publication Year
2008
Page/Pages
p. 234-247
Journal
Journal of Economic Behavior & Organization, 68 (2008) 1
DOI
https://doi.org/10.1016/j.jebo.2008.04.003
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)