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- W2007367269 abstract "In this paper we extend the Harris‐Todaro model of rural‐to‐urban migration to include urban agglomeration effects, some urban real wage flexibility, and a government budget constraint. Without employment subsidies laissez‐faire migration is excessive unless real wage flexibility and agglomeration effects are high. Laissez‐faire migration is too low compared with the first‐best outcome supported by a subsidy, if its financing involves no costs. Simulations suggest that such a program would imply a substantial increase in taxation. If, as seems likely, an increase of this magnitude involves economic costs then the optimal outcome falls well short of first‐best." @default.
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- W2007367269 date "1999-08-01" @default.
- W2007367269 modified "2023-10-16" @default.
- W2007367269 title "The Welfare Economics of Rural‐To‐Urban Migration: The Harris‐Todaro Model Revisited" @default.
- W2007367269 doi "https://doi.org/10.1111/0022-4146.00142" @default.
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