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Unemployment, Migration, and Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Bencivenga, Valerie R
Smith, Bruce D
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Economic development is typically accompanied by migration from rural to urban employment. This migration is often associated with significant urban underemployment. Both factors are important in the development process. The authors consider a neoclassical growth model with rural-urban migration and urban underemployment, which arises from an adverse selection problem in labor markets. They demonstrate that rural-urban migration and underemployment can be a source of development traps and can give rise to a large set of periodic equilibria displaying undamped oscillation. Many such equilibria display long periods of uninterrupted growth, punctuated by brief but severe recessions. Copyright 1997 by the University of Chicago.
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Article provided by University of Chicago Press in its journal Journal of Political Economy .
Volume (Year): 105 (1997)
Issue (Month): 3 (June)
Pages: 582-608
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Handle: RePEc:ucp:jpolec:v:105:y:1997:i:3:p:582-608Contact details of provider: Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637 Fax: (773) 753-0811 Email: Web page: http://www.journals.uchicago.edu/JPE/home.html
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