The University of Southampton
University of Southampton Institutional Repository

Harris-Todaro models with a land market

Record type: Article

This paper adds a land market to a standard Harris-Todaro framework. In the standard model, the equilibrating force that limits rural-urban migration is a decline in the probability of formal employment, which follows from enlargement of the informal sector. The key insight of the present paper, borrowed from Brueckner (1990) [Brueckner, J.K., 1990. Analyzing Third World urbanization: A model with empirical evidence. Economic Development and Cultural Change 38, 587–610], is that urban land-rent escalation provides an additional force that limits the extent of migration. The most striking implication of this modified model is that formal-sector growth may not lead to additional migration from rural areas. The reason is that, because of land-rent escalation, such growth may depress a migrant's expected utility despite the improved chance of obtaining a formal job. In the second part of the analysis, the efficiency-wage model is used to make wages and employment in the formal sector endogenous instead of fixed. While many comparative-static effects are ambiguous in this more-complex model, the role of the land market is basically unaffected.

Full text not available from this repository.

Citation

Brueckner, Jan K. and Zenou, Yves (1999) Harris-Todaro models with a land market Regional Science and Urban Economics, 29, (3), pp. 317-339. (doi:10.1016/S0166-0462(98)00040-4).

More information

Published date: 1999
Keywords: harris-todaro, rural-urban migration, third world cities

Identifiers

Local EPrints ID: 33076
URI: http://eprints.soton.ac.uk/id/eprint/33076
ISSN: 0166-0462
PURE UUID: 7ede747f-7c21-462b-93fc-42f631221af9

Catalogue record

Date deposited: 26 Jul 2006
Last modified: 17 Jul 2017 15:54

Export record

Altmetrics

Contributors

Author: Jan K. Brueckner
Author: Yves Zenou

University divisions


Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×