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2016 | OriginalPaper | Chapter

3. Urban Unemployment and Urban–Rural Migration

Author : Tohru Naito

Published in: Sustainable Growth and Development in a Regional Economy

Publisher: Springer Japan

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Abstract

In Chap. 1, we consider the mechanism of regional agglomeration and dispersion with core–periphery model constructed by Ottaviano, Tabuchi, and Thisse [5]. This model is an extremely powerful model to explain how regional agglomeration and dispersion occur endogenously under the influence of economic activities. Because we assumed that full employment was established in Chap.1, we did not take account of unemployment in the model. However, unemployment is an extremely important issue to be resolved in many countries regardless of developing countries or developed countries. Some developing countries experience urban unemployment during economic development.

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previous chapter Regional Agglomeration and Spatial Economics
next chapter Neoclassical Economic Growth and Public Policy
Footnotes
1
Although we often use “area” and “region” in this chapter, we do not distinguish “area” from “region” strictly. However, we strictly distinguish “urban” from “rural.”
 
2
We assume a small open economy for simplification in this section though the price of agricultural goods in Harris and Todaro [2] is determined endogenously.
 
3
Note that \(\bar{K}_{X}\) is constant because \(\bar{K}_{X}\) denotes fixed capital input.
 
4
Household U does not earn wage income because household U is not employed by the manufactured goods sector. Consequently, w U is equal to zero. Moreover, although Harris and Todaro [2] consider no redistribution, we assume that the government redistributes the profits of both sectors for households. Therefore, unemployed households can buy both goods to maintain their lives.
 
Literature
1.
Corden, W. M., & Findlay, R. (1975). Urban unemployment, intersectoral capital mobility and development policy. Economica, 42(165), 59–78.CrossRef
2.
Harris, J. R., & Todaro, M. P. (1970). Migration, unemployment and development: A two-sector analysis. American Economic Review, 60(1), 126–142.
3.
Lewis, W. A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22(2), 139–191.CrossRef
4.
Neary, P. (1988). Stability of the mobile-capital Harris-Todaro model: Some further results. Economica, 55(217), 123–127.CrossRef
5.
Ottaviano, G., Tabuchi, T., & Thisse, J. F. (2002). Agglomeration and trade revisited. International Economic Review, 43(2), 409–436.CrossRef
Metadata
Title
Urban Unemployment and Urban–Rural Migration
Author
Tohru Naito
Copyright Year
2016
Publisher
Springer Japan
Book
Sustainable Growth and Development in a Regional Economy

Print ISBN: 978-4-431-55293-2

Electronic ISBN: 978-4-431-55294-9

Copyright Year: 2016

DOI
https://doi.org/10.1007/978-4-431-55294-9_3