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Migration, Human Capital, and Poverty in a Dual-Economy of a Developing Country

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  • Paul R. Masson

Abstract

The coexistence of urban and rural poverty and migration to cities is studied in a dual economy model where the acquisition of skills is costly and involves migration to urban areas. In this model, both the distribution of innate abilities and the distribution of wealth matter for the migration decision, and costs of backmigration may produce an urban poverty trap if unemployment lowers household wealth below the cost of skills acquisition.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/128.

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Length: 36
Date of creation: 01 Sep 2001
Date of revision:
Handle: RePEc:imf:imfwpa:01/128

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Related research

Keywords: Migration; Poverty; Development; wage; unemployment; employment; unemployed; agricultural wage; urban unemployment; unemployment rate; wages; agricultural labor force; urban employment; aggregate unemployment; skilled labor; wage rates; unemployment equilibrium; wage subsidy; informal sector employment; employment opportunities; minimum wage; wage incentive; agricultural wages; wage incentives; informal sector ? employment; unemployed labor; employment rate; rate of unemployment; equilibrium unemployment; urban labor force; labor force growth; minimum wages; wage determination; rural employment; agricultural employment;

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Cited by:
  1. Vincenzo Lombardo, 2008. "Dual Economy Models: A Primer for…Growth, Income Distribution and Poverty Analysis," Working Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 12_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  2. Pierre-Richard Agenor, 2005. "The Macroeconomics Of Poverty Reduction," Manchester School, University of Manchester, University of Manchester, vol. 73(4), pages 369-434, 07.
  3. Vincenzo Lombardo, 2012. "Modern foundations of dual economy models," Discussion Papers, CRISEI, University of Naples "Parthenope", Italy 8_2012, CRISEI, University of Naples "Parthenope", Italy.
  4. Salvatore Capasso & Maria Rosaria Carillo & Rita De Siano, 2011. "Migration flows, structural change, and growth convergence: A panel data analysis of Italian regions," Discussion Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 7_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

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