Rural-to-urban migration, human capital, and agglomeration

Arbeitspapier

A new general-equilibrium model that links together rural-to-urban migration, the externality effect of the average level of human capital, and agglomeration economies shows that in developing countries, unrestricted rural-to-urban migration reduces the average income of both rural and urban dwellers in equilibrium. Various measures aimed at curtailing rural-to-urban migration by unskilled workers can lead to a Pareto improvement for both the urban and rural dwellers. In addition, the government can raise social welfare by reducing the migration of skilled workers to the city. Moreover, without a restriction on rural-to-urban migration, a government's efforts to increase educational expenditure and thereby the number of skilled workers may not increase wage rates in the rural or urban areas.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEF Discussion Papers on Development Policy ; No. 118

Classification and Topics

• Classification: Wirtschaft
• Subject: Landflucht ; Humankapital ; Agglomerationseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stark, Oded ; Fan, C. Simon
• Event: Veröffentlichung
• (who): University of Bonn, Center for Development Research (ZEF)
• (where): Bonn
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/32290
• Last update: 10.03.2025, 11:43 AM CET