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Urban Unemployment, Factor Accumulation, and Welfare

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  • Shigemi Yabuuchi

Abstract

This paper shows that, contrary to the conventional wisdom, economic expansion (factor accumulation) may be immiserizing in the mobile capital Harris‐Todaro model if scarcity of land is introduced in agricultural production. The effect of factor accumulation on the level of unemployment is examined, and precise conditions for the expected response are derived.

Suggested Citation

  • Shigemi Yabuuchi, 1998. "Urban Unemployment, Factor Accumulation, and Welfare," Review of Development Economics, Wiley Blackwell, vol. 2(1), pages 31-40, February.
    • Handle: RePEc:bla:rdevec:v:2:y:1998:i:1:p:31-40
    DOI: 10.1111/1467-9361.00026
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    Cited by:

    1. Chaudhuri, Sarbajit, 2007. "Foreign capital, welfare and urban unemployment in the presence of agricultural dualism," Japan and the World Economy, Elsevier, vol. 19(2), pages 149-165, March.
    2. Stefan Csordas, 2013. "The general equilibrium effects of energy efficiency gains in developing countries with urban unemployment," Economics Bulletin, AccessEcon, vol. 33(3), pages 1969-1977.
    3. Nobuyuki Takeuchi, 2015. "Reconsidering the effect of economic development on urban unemployment under nonhomothetic preferences," Economics Bulletin, AccessEcon, vol. 35(1), pages 313-321.
    4. Jonathan R. W. Temple, 2005. "Growth and Wage Inequality in a Dual Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 57(2), pages 145-169, April.

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