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Migration, Human Capital, and Poverty in a Dual-Economy Model of a Developing Country

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  • Paul R Masson

Abstract

The coexistence of urban and rural poverty and migration to cities is studied in a dual economy model where the acquisition of skills is costly and involves migration to urban areas. In this model, both the distribution of innate abilities and the distribution of wealth matter for the migration decision, and costs of backmigration may produce an urban poverty trap if unemployment lowers household wealth below the cost of skills acquisition.

Suggested Citation

  • Paul R Masson, 2001. "Migration, Human Capital, and Poverty in a Dual-Economy Model of a Developing Country," IMF Working Papers 01/128, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:01/128
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    Cited by:

    1. Vincenzo Lombardo, 2008. "Dual Economy Models: A Primer for…Growth, Income Distribution and Poverty Analysis," Working Papers 12_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    2. Vincenzo Lombardo, 2012. "Modern foundations of dual economy models," Discussion Papers 8_2012, CRISEI, University of Naples "Parthenope", Italy.
    3. Pierre-Richard Agenor, 2005. "The Macroeconomics Of Poverty Reduction," Manchester School, University of Manchester, vol. 73(4), pages 369-434, July.
    4. Salvatore Capasso & Maria Rosaria Carillo & Rita De Siano, 2011. "Migration flows, structural change, and growth convergence: A panel data analysis of Italian regions," Discussion Papers 7_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

    More about this item

    Keywords

    Development; Poverty; Population; Migration; wage; unemployment; employment; unemployed; Measurement and Analysis of Poverty; Economic Development: Regional; Urban; and Rural Analyses;

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