Arbeitspapier

The Todaro Paradox Revisited

The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an efficiency wage model, we find that there is no Todaro paradox while this is not always true in a search-matching model since a decrease in the urban unemployment benefit can increase both urban employment and unemployment.

Sprache
Englisch

Erschienen in
Series: IUI Working Paper ; No. 652

Klassifikation
Wirtschaft
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Labor Contracts
Unemployment: Models, Duration, Incidence, and Job Search
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Thema
Efficiency Wages
Search-Matching
Rural-Urban Migration
Policy
Effizienzlohn
Landflucht
Städtische Arbeitslosigkeit
Arbeitslosenversicherung
Theorie
Matching

Ereignis
Geistige Schöpfung
(wer)
Zenou, Yves
Ereignis
Veröffentlichung
(wer)
The Research Institute of Industrial Economics (IUI)
(wo)
Stockholm
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Zenou, Yves
  • The Research Institute of Industrial Economics (IUI)

Entstanden

  • 2005

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