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Intersectoral Size Differences and Migration: Kuznets Revisited

  • Nejat Anbarci

    ()

    (Department of Economics, Florida International University)

  • Mehmet A. Ulubasoglu

    ()

    (Department of Economics, Deakin University)

We offer a specific channel on Kuznets' hypothesis: intersectoral urban-rural size differences result in an intersectoral income inequality, increasing the national inequality; this, in turn, prompts an intersectoral migration, which works as an equilibriating mechanism, decreasing the inequality in due course. The theoretical predictions yield a recursive triangular system, in which we test, i) how the sectoral size differences influence the agricultural income, ii) how a change in agricultural income acts on migration, and iii) what happens to the income distribution as a result of migration. We find a very strong support for the theoretical predictions and the Kuznets hypothesis.

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File URL: http://casgroup.fiu.edu/pages/docs/2247/1275232297_05-05.pdf
File Function: First version, 2005
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Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0505.

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Length: 40 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:fiu:wpaper:0505
Contact details of provider: Postal: Miami, FL 33199
Phone: (305) 348-2316
Fax: (305) 348-1524
Web page: http://casgroup.fiu.edu/Economics/

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