Takeuchi, Nobuyuki (2012): Reconsidering the effect of economic development on urban unemployment under non-homothetic preferences.
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We reconsider the effect of economic development on urban unemployment by introducing households with non-homothetic preferences into a sector-specific capital version of the Harris-Todaro model. Contrary to previous studies, this work shows that, while urban development reduces urban unemployment, rural development expands it. As for labor growth, it normally increases urban unemployment.
|Item Type:||MPRA Paper|
|Original Title:||Reconsidering the effect of economic development on urban unemployment under non-homothetic preferences|
|Keywords:||sector-specific capital; Harris-Todaro model; economic development; non-homothetic preference; urban unemployment|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J60 - General
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
|Depositing User:||Nobuyuki Takeuchi|
|Date Deposited:||14. Jun 2012 16:30|
|Last Modified:||16. Feb 2013 23:34|
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