Income distribution in the Harris-Todaro model
نویسنده
چکیده
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 inequality. (J.E.L.: O15) I am grateful to Kaushik Basu, Ravi Kanbur, John Knight and Stephen Redding for helpful comments. A previous, very different version of this paper circulated as “Rural-urban migration and the Kuznets curve”. I am grateful to James Rauch and Stephen Redding for comments on that version. All errors are mine. Email [email protected]
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The Harris-Todaro Model
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 ...
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