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This paper challenges the prediction of Todaro's model of rural-to-urban migration that an ‘increase in urban employment increases urban unemployed.’ It is shown that if the urban demand for labor is isoelastic or inelastic, creation of urban jobs causes urban unemployment to decline and...
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This paper challenges the prediction of Todaro's model of rural-to-urban migration that an ‘increase in urban employment increases urban unemployed.’ It is shown that if the urban demand for labor is isoelastic or inelastic, creation of urban jobs causes urban unemployment to decline and...
Persistent link: https://www.econbiz.de/10015210609
We explore the relationship between aggregate relative poverty and migration. We draw upon Polish regional data and use a measure of aggregate relative poverty that is functionally related to the Gini coefficient. We find that the Gini coefficient and migration are positively correlated, holding...
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Under a deadweight loss of tax and transfer, there is tension between the optimal policy choices of a Rawlsian social planner and a utilitarian social planner. However, when with a weight greater than a certain critical value the individuals’ utility functions incorporate distaste for low...
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