Khan, M. Ali Khan (2007): The Harris-Todaro Hypothesis. Published in:
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The Harris-Todaro hypothesis replaces the equality of wages by the equality of ‘expected’ wages as the basic equilibrium condition in a segmented but homogeneous labour market, and in so doing it generates an equilibrium level of urban unemployment when a mechanism for the determination of urban wages is specified. This article reviews work in which the Harris-Todaro hypothesis is embedded in canonical models of trade theory in order to investigate a variety of issues in development economics. These include the desirability (or the lack thereof) of foreign investment, the complications of an informal sector, and the presence of clearly identifiable ethnic groups.
| Item Type: | MPRA Paper |
|---|---|
| Language: | English |
| Keywords: | Harris-Todaro; Wages; Labour Economics; Labour Market; Rural to Urban Migration |
| Subjects: | J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs |
| ID Code: | 2201 |
| Deposited By: | Zafar Javed Naqvi |
| Deposited On: | 12. Mar 2007 |
| Last Modified: | 07. Nov 2007 02:19 |
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