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Urban Sprawl And Rural Development: Theory And Evidence From India

Author

Listed:
  • Viktoria Hnatkovska

    (University of British Columbia)

  • Amartya Lahiri

    (Centre for Advance Research and Learning (CAFRAL))

Abstract

We examine the evolution of the fortunes of rural and urban workers in India between 1983 and 2010, a period of rapid growth in India. We find evidence of a significant convergence of education attainments, occupation distribution, and wages of rural workers towards those of urban workers. However, individual worker characteristics account for at most 40 percent of the wage convergence. We develop a two-sector model of structural transformation to rationalize the rest of the rural-urban wage convergence in India as the consequence of urbanization through land reclassification induced by productivity growth.

Suggested Citation

  • Viktoria Hnatkovska & Amartya Lahiri, 2017. "Urban Sprawl And Rural Development: Theory And Evidence From India," Working Papers 022318, Centre for Advanced Financial Research and Learning (CAFRAL).
    • Handle: RePEc:ris:cafral:022318
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    File URL: https://www.cafral.org.in/sfControl/content/Speech/116201744510PMRuralIndia.pdf
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    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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