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Economic and Environmental Effects of Rural-Urban Migrant Training

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  • Xiaochun Li
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    Abstract

    In this paper, we conduct the simple comparative static analysis of the environmental and economic effects of the government and producer services sector's training of rural-urban migrants. We mainly focus our attention on environmental issues and reach the following conclusions: When the government lowers the interest rate of training loans, environmental conditions will worsen. However, when the producer services sector increases the unit cost of training rural labour, the opposite effect occurs, and environmental conditions will improve. In addition, we discuss the conditions under which a government reduction in the interest rate of training loans will lead to the reduction of pollution damage to agricultural production and a decrease in social utility.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Prague Economic Papers.

    Volume (Year): 2013 (2013)
    Issue (Month): 3 ()
    Pages: 385-402

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    Handle: RePEc:prg:jnlpep:v:2013:y:2013:i:3:id:458:p:385-402

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    Related research

    Keywords: rural-urban migration; low interest rate loan; environment effects; employee vocational training;

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    References

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    1. Galor, Oded & Moav, Omer, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," CEPR Discussion Papers 2307, C.E.P.R. Discussion Papers.
    2. Xiaochun Li & Xiaoying Qian, 2011. "Economic Analysis On The Urban–Rural Disparity In Human Capital In China," South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 146-160, 06.
    3. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
    4. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2006. "Pollution and Informal Sector: A Theoretical Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 363-378.
    5. Grinols, Earl L, 1991. "Unemployment and Foreign Capital: The Relative Opportunity Costs of Domestic Labour and Welfare," Economica, London School of Economics and Political Science, vol. 58(229), pages 107-21, February.
    6. J. N. Bhagwati & T. N. Srinivasan, 1975. "Education in a 'Job Ladder' Model and the Fairness-in-Hiring Rule," Working papers 159, Massachusetts Institute of Technology (MIT), Department of Economics.
    7. Gupta, Manash Ranjan, 1993. "Rural-urban migation, informal sector and development policies A theoretical analysis," Journal of Development Economics, Elsevier, vol. 41(1), pages 137-151, June.
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