RURAL-URBAN MIGRATION AND SURPLUS LABOUR *
1979; Oxford University Press; Volume: 31; Issue: 3 Linguagem: Inglês
10.1093/oxfordjournals.oep.a041456
ISSN1464-3812
Autores Tópico(s)Fiscal Policy and Economic Growth
ResumoFLEXIBLE work-hours and surplus labour in agriculture are incorporated into the Harris-Todaro model. Migration equilibrium is characterized by equality of expected welfare rather than expected income in the two sectors. Increase in expected wage still causes outnugration from agriculture, but if the commodity-price ratio is exogenous, outmigration occurs when minimum wage is raised even when expected urban wage is constant. Moreover, migration flows are larger than in a closed economy with fixed work-hours. Implications of these results for determining shadow wage rate of labour and designing economic policy are also discussed.
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