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@article{ Stark2008, title = {Rural-to-urban migration, human capital, and agglomeration}, author = {Stark, Oded and Fan, C. Simon}, journal = {Journal of Economic Behavior & Organization}, number = {1}, pages = {234-247}, volume = {68}, year = {2008}, doi = {https://doi.org/10.1016/j.jebo.2008.04.003}, urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-264044}, 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 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.}, }