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Cities, Towns, and Poverty: Migration Equilibrium and Income Distribution in a Todaro-type Model with Multiple Destinations

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  • Luc Christiaensen

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  • Joachim De Weerdt
  • Ravi Kanbur

Abstract

Should public investment be targeted to big cities or to small towns, if the objective is to minimize national poverty? To answer this policy question the basic Todaro-type model of rural-urban migration is extended to the case of migration from rural areas to two potential destinations, secondary town and big city. The findings confirm that given migration responses, national poverty outcomes are not immune to whether urban employment generation takes place in the towns or the city. [LICOS Discussion Paper Series 395].

Suggested Citation

  • Luc Christiaensen & Joachim De Weerdt & Ravi Kanbur, 2017. "Cities, Towns, and Poverty: Migration Equilibrium and Income Distribution in a Todaro-type Model with Multiple Destinations," Working Papers id:11955, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:11955
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    1. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82, pages 1671-1748, September.
    2. Basu, Arnab K. & Chau, Nancy H. & Fields, Gary S. & Kanbur, Ravi, 2016. "Job Creation in a Multi-Sector Labor Market Model for Developing Economies," IZA Discussion Papers 9972, Institute for the Study of Labor (IZA).
    3. Marcel Fafchamps & Forhad Shilpi, 2013. "Determinants of the Choice of Migration Destination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 388-409, June.
    4. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    5. Francisco H. G. Ferreira & Shaohua Chen & Andrew Dabalen & Yuri Dikhanov & Nada Hamadeh & Dean Jolliffe & Ambar Narayan & Espen Beer Prydz & Ana Revenga & Prem Sangraula & Umar Serajuddin & Nobuo Yosh, 2016. "A global count of the extreme poor in 2012: data issues, methodology and initial results," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 141-172, June.
    6. Anand, Sudhir & Kanbur, S M R, 1985. "Poverty under the Kuznets Process," Economic Journal, Royal Economic Society, vol. 95(380a), pages 42-50, Supplemen.
    7. Ferre, Celine & Ferreira, Francisco H.G. & Lanjouw, Peter, 2010. "Is there a metropolitan bias ? the inverse relationship between poverty and city size in selected developing countries," Policy Research Working Paper Series 5508, The World Bank.
    8. Jonathan Temple & Huikang Ying, 2014. "Life During Structural Transformation," Bristol Economics Discussion Papers 14/650, Department of Economics, University of Bristol, UK, revised 08 Dec 2014.
    9. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2011. "Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1010-1033, August.
    10. Christiaensen,Luc & Kanbur,Ravi & Christiaensen,Luc & Kanbur,Ravi, 2016. "Secondary towns and poverty reduction : refocusing the urbanization agenda," Policy Research Working Paper Series 7895, The World Bank.
    11. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-1169, Sept.-Oct.
    12. Céline Ferré & Francisco H.G. Ferreira & Peter Lanjouw, 2012. "Is There a Metropolitan Bias? The relationship between poverty and city size in a selection of developing countries," World Bank Economic Review, World Bank Group, vol. 26(3), pages 351-382.
    13. Kathleen Beegle & Luc Christiaensen & Andrew Dabalen & Isis Gaddis, 2016. "Poverty in a Rising Africa," World Bank Publications, The World Bank, number 22575.
    14. Jonathan R. W. Temple, 2005. "Growth and Wage Inequality in a Dual Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 57(2), pages 145-169, April.
    15. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    16. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773.
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    1. repec:eee:wdevel:v:107:y:2018:i:c:p:264-276 is not listed on IDEAS
    2. Emran, M. Shahe & Shilpi, Forhad, 2018. "Beyond dualism: Agricultural productivity, small towns, and structural change in Bangladesh," World Development, Elsevier, vol. 107(C), pages 264-276.

    More about this item

    Keywords

    Secondary Towns versus Big Cities; Poverty Reduction; Poverty Gradient; Todaro Model; Migration Equilibrium; Equilibrium Income Distribution; city; employment generation; urban employment; destinations;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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