An Analysis of Rural-Urban Migration and Protection
In this paper, a Harris-Todaro migration model is developed with the urban manufacturing sector supplying a crucial input for the rural sector. Capital is region specific but flows freely between two urban sectors. Final goods are traded and have exogenously fixed prices. If this economy imposes a tariff on the import-competing manufacturing sector, employment might go down even if the protected sector is labor intensive. The paper describes how intersectoral linkages can play a significant role in determining the employment effects of a tariff.
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Volume (Year): 29 (1996)
Issue (Month): 4 (November)
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