{"title":"URBAN‐RURAL MIGRATION: UNCERTAINTY AND THE EFFECT OF A CHANGE IN THE MINIMUM WAGE","authors":"Charles A. Ingene , Eden S.H. Yu","doi":"10.1111/j.1435-5597.1989.tb01187.x","DOIUrl":null,"url":null,"abstract":"<div><div>This paper extends the neoclassical, Harris‐Todaro model of urban‐rural migration to the case of production uncertainty in the agricultural sector. A unique feature of the Harris‐Todaro model is an exogenously determined minimum wage in the urban sector that exceeds the rural wage. Migration occurs until the rural wage equals the expected urban wage (“expected” due lo employment uncertainly). The effects of a change in the minimum wage upon regional outputs, resource allocation, factor rewards, expected profits, and expected national income are explored, and the influence of production uncertainly upon the obtained results are delineated.</div></div>","PeriodicalId":51458,"journal":{"name":"Papers in Regional Science","volume":"67 1","pages":"Pages 135-145"},"PeriodicalIF":2.3000,"publicationDate":"1989-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Papers in Regional Science","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1056819023026131","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper extends the neoclassical, Harris‐Todaro model of urban‐rural migration to the case of production uncertainty in the agricultural sector. A unique feature of the Harris‐Todaro model is an exogenously determined minimum wage in the urban sector that exceeds the rural wage. Migration occurs until the rural wage equals the expected urban wage (“expected” due lo employment uncertainly). The effects of a change in the minimum wage upon regional outputs, resource allocation, factor rewards, expected profits, and expected national income are explored, and the influence of production uncertainly upon the obtained results are delineated.
期刊介绍:
Regional Science is the official journal of the Regional Science Association International. It encourages high quality scholarship on a broad range of topics in the field of regional science. These topics include, but are not limited to, behavioral modeling of location, transportation, and migration decisions, land use and urban development, interindustry analysis, environmental and ecological analysis, resource management, urban and regional policy analysis, geographical information systems, and spatial statistics. The journal publishes papers that make a new contribution to the theory, methods and models related to urban and regional (or spatial) matters.