Rural-Urban Migration and Unemployment: Theory and Policy Implications

Preprint OPEN
Zenou, Yves;
(2010)
  • Subject: Efficiency wages; policy; rural-urban migration; Todaro paradox
    • jel: jel:D83 | jel:J41 | jel:J64 | jel:O15

We develop a regional model where, in the city, unemployment prevails because of too high (efficiency) wages, while, in the rural area, workers are paid at their marginal productivity. We characterize the steady-state equilibrium and show that it is unique. We then cons... View more
Share - Bookmark