Intersectoral Size Differences and Migration: Kuznets Revisited
AbstractWe 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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Bibliographic InfoPaper provided by Florida International University, Department of Economics in its series Working Papers with number 0505.
Length: 40 pages
Date of creation: May 2005
Date of revision:
Kuznets hypothesis; intersectoral size differences; inequality; migration;
Other versions of this item:
- Nejat Anbarci & Mehmet Ulubasoğlu, 2011. "Intersectoral size differences and migration: Kuznets revisited," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(2), pages 251-292.
- Mehmet Ulubasoglu & Nejat Anbarci, 2005. "Intersectoral Size Differences and Migration: Kuznets Revisited," Economics Series 2005_16, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- 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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