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Rural-to-urban migration, human capital, and agglomeration

Land-Stadt-Migration, Humankapital und Agglomeration
[journal article]

Stark, Oded; Fan, C. Simon

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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.
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 http://dx.doi.org/10.1016/j.jebo.2008.04.003
Status Postprint; reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)
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