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Intersectoral Size Differences and Migration: Kuznets Revisited

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Author Info
Nejat Anbarci () (Department of Economics, Florida International University)
Mehmet A. Ulubasoglu () (Department of Economics, Deakin University)

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Abstract

We offer a specific channel on Kuznets' hypothesis: intersectoral urban-rural size differences result in an intersectoral income inequality, increasing the national inequality; this, in turn, prompts an intersectoral migration, which works as an equilibriating mechanism, decreasing the inequality in due course. The theoretical predictions yield a recursive triangular system, in which we test, i) how the sectoral size differences influence the agricultural income, ii) how a change in agricultural income acts on migration, and iii) what happens to the income distribution as a result of migration. We find a very strong support for the theoretical predictions and the Kuznets hypothesis.

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File URL: http://www.fiu.edu/orgs/economics/wp2005/05-05.pdf
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File Function: First version, 2005
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Publisher Info
Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0505.

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Length: 40 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:fiu:wpaper:0505

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Related research
Keywords: Kuznets hypothesis; intersectoral size differences; inequality; migration;

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Find related papers by JEL classification:
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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References listed on IDEAS
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  1. Gábor Kézdi & Robert J. Willis, 2003. "Who Becomes a Stockholder? Expectations, SUbjective Uncertainty, and Asset Allocation," Working Papers wp039, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
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    Other versions:
  3. Christopher R. Udry & Esther Duflo, 2004. "Intrahousehold Resource Allocation in Cote D'Ivoire: Social Norms, Separate Accounts and Consumption Choices," Yale School of Management Working Papers ysm407, Yale School of Management. [Downloadable!]
    Other versions:
  4. Slesnick, Daniel T., 2002. "Prices and Regional Variation in Welfare," Journal of Urban Economics, Elsevier, vol. 51(3), pages 446-468, May. [Downloadable!] (restricted)
  5. James M. Poterba & Andrew A. Samwick, 1997. "Household Portfolio Allocation Over the Life Cycle," NBER Working Papers 6185, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Matthew McKeever & Nicholas H. Wolfinger, 2001. "Reexamining the Economic Costs of Marital Disruption for Women," Social Science Quarterly, The Southwestern Social Science Association, vol. 82(1), pages 202-217. [Downloadable!] (restricted)
  7. B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 2001. "What Accounts for the Variation in Retirement Wealth among U.S. Households?," American Economic Review, American Economic Association, vol. 91(4), pages 832-857, September. [Downloadable!] (restricted)
    Other versions:
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