Rural Urban Interaction And Migration Notes
This is a short sample from our Development Economics-1 Notes collection which contains 387 pages of notes in total. If you find this useful you might like to consider purchasing our Development Economics-1 Notes.
| Pages In Full Document | 7 |
| Category: | Economics and Management Notes |
| Original Document File Type: | Word (Docx) (Conversion to PDF is available post purchase if required) |
| Price: | Part of a package Development Economics-1 Notes containing 19 other documents which retails for £24.99. |
The original file is a 'Word (Docx)' whilst this sample is a 'PDF' representation of said file. This means that the formatting here may have errors. The original document you'll receive on purchase should have more polished formatting.
Rural Urban Interaction And Migration Revision
The following is a plain text extract of the PDF sample above, taken from our Development Economics-1 Notes. This text version has had its formatting removed so pay attention to its contents alone rather than its presentation. The version you download will have its original formatting intact and so will be much prettier to look at.RURAL URBAN INTERACTION AND MIGRATION 'Development Economics' Ray 1998 (Ch. 10) • 'As economic development proceeds, individuals move from rural to urban areas, agriculture acts as a supplier of labour to industry' • The Lewis Model o The Dual Economy Surplus labour from 'traditional' to 'modern' sector • Can be removed at little or no opp. Cost • Why is surplus labour important? o Urban workers still want food! o May ↑work effort. • Rural urban migration 'Leading issues in economic development' Meier & Rauch 2000 • Economic development with unlimited supplies of labour o Population so large relative to capital and resources MPL is negligible or even -ve o 'disguised' use in agricultural sector o 'each trader makes only a few sales; markets are crowded with stalls, and if the number of stalls were greatly ↓the consumers would be no whit worse off' • ↑labour force? o 'one of the surest ways of ↑the national income is therefore to create new sources of employment for women outside the home' o ↑population as a result of births > deaths o Use generated by ↑efficiency BUT doesn't seem to have occurred • 'A 70% urban real wage premium for example, might be of little consequence to the prospective migrant if his chances of actually securing a job are, say, one in fifty' o Although may still be economically rational in the long run. • Lewis suggests that wages remain constant: o This means that earnings of owners of capital equipment would not be ↓by ↑wages, and he believed that these earnings were the main source of savings that would finance further investment and drive economic growth. • With H-T model there is no subsistence wage. • Jamaica: o Distorted wage structure - workers of same skill level receive different wages in different industries. o 'many of the u/e, though by no means all, may be better off than those fully employed in the low wage sector.' o 98% of heads of household wanting work were u/e o u/e level in sending areas was +vely (and sig.) associated with migration 'migration occurs largely in response to wage differentiation and in spite of higher u/e levels in high wage areas.' • wage↑ in high wage areas of 10%↑rate of migration by 30%
• So, why does comparatively prosperous and rapidly growing Jamaica seemingly have more u/e than poor and stagnant Haiti? o 'the larger the high wage modern sector, the more u/e an economy can afford to support.'
****************************End Of Sample*****************************
Buy the full version of these notes and essays alongside much more in our Development Economics-1 Notes.