Migration, Human Capital, and Poverty in a Dual-Economy of a Developing Country
AbstractThe 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 InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 01/128.
Date of creation: 01 Sep 2001
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Postal: International Monetary Fund, Washington, DC USA
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