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Migration, employment and development: a three-sector analysis

  • Prabir C. Bhattacharya

    (Department of Economics, Heriot-Watt University, Edinburgh, UK)

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    This paper introduces dynamics and migration into a three-sector general equilibrium model of LDC which systematically incorporates an Informal sector and provides a framework alternative to the Harris-Todaro-type framework. The results of the paper underscore the dynamic nature of the Informal sector and suggest that the ranking of policies to improve welfare would be considerably different in this model compared to those in the Harris-Todaro-type models. It is also argued that the framework developed here can be extended to explore a number of other issues in the context of development. Copyright © 1998 John Wiley & Sons, Ltd.

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    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 10 (1998)
    Issue (Month): 7 ()
    Pages: 899-921

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    Handle: RePEc:wly:jintdv:v:10:y:1998:i:7:p:899-921
    Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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    1. Banerjee, Biswajit, 1983. "The Role of the Informal Sector in the Migration Process: A Test of Probabilistic Migration Models and Labour Market Segmentation for India," Oxford Economic Papers, Oxford University Press, vol. 35(3), pages 399-422, November.
    2. Valerie R. Bencivenga & Bruce D. Smith, 1995. "Unemployment, migration, and growth," Working Papers 561, Federal Reserve Bank of Minneapolis.
    3. Prabir C. Bhattacharya, 1998. "Sector-specific sticky wages and wage subsidy: a note," Journal of Economic Studies, Emerald Group Publishing, vol. 25(2), pages 124-128, May.
    4. Prabir C. Bhattacharya, 1996. "The role of the informal sector in structural transformation: Some Indian evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(1), pages 83-94.
    5. Lundborg, Per, 1990. "Rural-urban migration and the transition from traditional to modern agriculture," Journal of Development Economics, Elsevier, vol. 33(2), pages 287-307, October.
    6. El-Gamal, Mahmoud A., 1994. "A dynamic migration model with uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 18(3-4), pages 511-538.
    7. Gupta, Manash Ranjan, 1994. "Foreign capital, income inequality and welfare in a Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 45(2), pages 407-414, December.
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