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Urban Unemployment And Development Policy: The Introduction Of An

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  • Shigemi Yabuuchi

Abstract

This work explicitly introduces the government activity to collect and transfer unemployment allowances into the Harris–Todaro model. It examines both the effectiveness of various policy tools and the effect this activity has on welfare. The findings with certain qualifications are that the Harris–Todaro policy prescriptions hold, even if we allow for the resource‐using activity to resolve the unemployment problem. Furthermore, an increase in the level of such an activity may improve welfare.

Suggested Citation

  • Shigemi Yabuuchi, 1996. "Urban Unemployment And Development Policy: The Introduction Of An," Economics and Politics, Wiley Blackwell, vol. 8(3), pages 241-249, November.
    • Handle: RePEc:bla:ecopol:v:8:y:1996:i:3:p:241-249
    DOI: 10.1111/j.1468-0343.1996.tb00130.x
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