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Migration, employment and development: a three-sector analysis

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  • Prabir C. Bhattacharya

    (Department of Economics, Heriot-Watt University, Edinburgh, UK)

Abstract

This paper introduces dynamics and migration into a three-sector general equilibrium model of LDC which systematically incorporates an Informal sector and provides a framework alternative to the Harris-Todaro-type framework. The results of the paper underscore the dynamic nature of the Informal sector and suggest that the ranking of policies to improve welfare would be considerably different in this model compared to those in the Harris-Todaro-type models. It is also argued that the framework developed here can be extended to explore a number of other issues in the context of development. Copyright © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Prabir C. Bhattacharya, 1998. "Migration, employment and development: a three-sector analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(7), pages 899-921.
    • Handle: RePEc:wly:jintdv:v:10:y:1998:i:7:p:899-921
    DOI: 10.1002/(SICI)1099-1328(1998110)10:7<899::AID-JID552>3.0.CO;2-5
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    References listed on IDEAS

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    1. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    2. El-Gamal, Mahmoud A., 1994. "A dynamic migration model with uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 18(3-4), pages 511-538.
    3. Bencivenga, Valerie R & Smith, Bruce D, 1997. "Unemployment, Migration, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 582-608, June.
    4. Banerjee, Biswajit, 1983. "The Role of the Informal Sector in the Migration Process: A Test of Probabilistic Migration Models and Labour Market Segmentation for India," Oxford Economic Papers, Oxford University Press, vol. 35(3), pages 399-422, November.
    5. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    6. Bhagwati, Jagdish N & Srinivasan, T N, 1974. "On Reanalyzing the Harris-Todaro Model: Policy Rankings in the Case of Sector-Specific Sticky Wages," American Economic Review, American Economic Association, vol. 64(3), pages 502-508, June.
    7. Lundborg, Per, 1990. "Rural-urban migration and the transition from traditional to modern agriculture," Journal of Development Economics, Elsevier, vol. 33(2), pages 287-307, October.
    8. Gupta, Manash Ranjan, 1994. "Foreign capital, income inequality and welfare in a Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 45(2), pages 407-414, December.
    9. Bhattacharya, Prabir C, 1994. "A Multi-sector Model of LDC," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(3), pages 225-255, August.
    10. L. K. Deshpande, 1983. "Urban Labour Markets: Problems and Policies," International Economic Association Series, in: Austin Robinson & P. R. Brahmananda & L. K. Deshpande (ed.), Employment Policy in a Developing Country A Case-study of India Volume 1, chapter 4, pages 83-96, Palgrave Macmillan.
    11. Prabir C. Bhattacharya, 1998. "Sector-specific sticky wages and wage subsidy: a note," Journal of Economic Studies, Emerald Group Publishing, vol. 25(2), pages 124-128, May.
    12. Prabir C. Bhattacharya, 1996. "The role of the informal sector in structural transformation: Some Indian evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(1), pages 83-94.
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    Cited by:

    1. Bhattacharya, Prabir C., 2011. "Informal sector, income inequality and economic development," Economic Modelling, Elsevier, vol. 28(3), pages 820-830, May.
    2. Cornilius Chikwama, 2004. "Rural Off-Farm Employment and Farm Investment: An Analytical Framework and Evidence from Zimbabwe," CERT Discussion Papers 0403, Centre for Economic Reform and Transformation, Heriot Watt University.
    3. Garrett, James, 2004. "Living life," FCND briefs 171, International Food Policy Research Institute (IFPRI).
    4. Cornilius Chikawama, 2004. "Quota Rural Off-Farm Employment and Farm Investment: An Analytical Framework and Evidence from Zimbabwe," Working Papers E04, Department of Economics, School of Management and Languages, Heriot Watt University.
    5. Deng, Wen-Shuenn & Lin, Yi-Chen & Gong, Jinguo, 2012. "A smooth coefficient quantile regression approach to the social capital–economic growth nexus," Economic Modelling, Elsevier, vol. 29(2), pages 185-197.
    6. Mahreen Mahmud & Tareena Musaddiq & Farah Said, 2010. "Internal Migration Patterns in Pakistan—The Case for Fiscal Decentralisation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 593-607.

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