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Migration, Welfare, Inequality and Shadow Wage


  • Gupta, Manash Ranjan


The shadow wage in the urban sector is evaluated in a Harris-Todaro type of model using Sen's welfare measure that incorporates inequality in income in the welfare function. It appears that the shadow wage lies above the market wage when the urban sector is underdeveloped. Copyright 1988 by Royal Economic Society.

Suggested Citation

  • Gupta, Manash Ranjan, 1988. "Migration, Welfare, Inequality and Shadow Wage," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 477-486, September.
  • Handle: RePEc:oup:oxecpp:v:40:y:1988:i:3:p:477-86

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    References listed on IDEAS

    1. repec:spr:portec:v:3:y:2004:i:2:d:10.1007_s10258-004-0033-z is not listed on IDEAS
    2. Beatriz Gaitan S. & Richard S.J. Tol & I. Hakan Yetkiner, 2006. "The Hotelling’s Rule Revisited in a Dynamic General Equilibrium Model," Papers of the Annual IUE-SUNY Cortland Conference in Economics,in: Proceedings of the Conference on Human and Economic Resources, pages 213-238 Izmir University of Economics.
    3. Andrea Bigano & Jacqueline M. Hamilton & Maren A. Lau & Richard S.J. Tol & Zhou Yuan, 2004. "A Global Database Of Domestic And International Tourist Numbers At National And Subnational Level," Working Papers FNU-54, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2004.
    4. P. Michael Link & Richard S. J. Tol, 2004. "Possible economic impacts of a shutdown of the thermohaline circulation: an application of FUND," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 3(2), pages 99-114, September.
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    Cited by:

    1. Mohamed Amara & Hatem Jemmali & Mohamed Ayadi, 2017. "Rural-Urban Migration and Income Disparity in Tunisia: A Decomposition Analysis," Working Papers 1085, Economic Research Forum, revised 04 2017.
    2. M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," PIDE-Working Papers 2007:16, Pakistan Institute of Development Economics.
    3. S.M. Turab Hussain, 2005. "Migration, Policy and Welfare in the Context of Developing Economies : A Simple Extended Family Approach," Development Economics Working Papers 22256, East Asian Bureau of Economic Research.
    4. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    5. Fields, Gary S., 2005. "A welfare economic analysis of labor market policies in the Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 76(1), pages 127-146, February.
    6. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 12 (The Economic Opportunity Cost of Labor)," Development Discussion Papers 2011-12, JDI Executive Programs.
    7. Takao FUKUCHI, 1998. "A Simulation Analysis Of The Urban Informal Sector," The Developing Economies, Institute of Developing Economies, vol. 36(3), pages 225-256, September.

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