The Harris-Todaro Model
نویسنده
چکیده
Excerpt] In terms of the current discussion of pro-poor economic growth, the Harris-Todaro model and other multi-sector labor market models can help policy-makers avoid two mistakes. One is to assume that development efforts should necessarily be channeled to the sectors where the poor are. The other is to assume that efforts should necessarily be focused on getting the poor out of the sectors in which they now are. Careful cost-benefit analysis based on well-specified labor market models is required to decide among such alternatives.
منابع مشابه
Income distribution in the Harris-Todaro model
This paper uses the Harris-Todaro model of rural-urban migration to explore how inequality is likely to evolve during the course of various kinds of economic development. It is shown that development in agriculture is likely to be reduce inequality. The paper also shows that the Kuznets curve is unlikely to be a general result, and clari¿es the reasons for the observed link between dualism and ...
متن کاملUrban job creation and unemployment in LDCs: Todaro vs. Harris and Todaro.
Overwhelming urban migration occurred so rapidly in many developing countries that widespread unemployment and squalid living conditions are commonplace. For many of these countries, stopping urban migration has become a major policy. Two models propose 2 different theories of urban unemployment. Todaro's short-term effects model concludes that job creation actually causes unemployment. Tod...
متن کاملInter-Regional Migration in Transition Economies: The Case of Poland
In this paper, we modify the Harris-Todaro model of migration to incorporate the impact of human capital, housing stock and the availability of publicly provided goods like health care and road provision in order to analyse the determinants of migration in different regions of Poland. We apply the Seemingly Unrelated Regression Equation [SURE] model to investigate the data. Our results show tha...
متن کاملShort-term migration, rural workfare programmes, and urban labour markets
Rural and urban labour markets in developing countries are integrated by migration flows, which respond to earnings opportunities at origin and destination. This is the core of the celebrated Harris and Todaro (1970) model, which shows how in equilibrium, migration flows equate expected wages between rural and urban areas. One important implication of this model is that changes in rural employm...
متن کاملThe Todaro Paradox Revisited
The Todaro Paradox Revisited The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an effici...
متن کامل