Chapter 7

Report
Chapter 7
Urbanization and
Rural-Urban
Migration: Theory
and Policy
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
The Migration and Urbanization
Dilemma

Urbanization: trends and projections
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-2
Figure 7.1
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-3
Figure 7.2
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-4
Table 7.1
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-5
Table 7.2
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-6
Figure 7.3
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-7
Figure 7.4
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-8
Table 7.3
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-9
Table 7.4
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-10
The Role of Cities



Industrial districts
Efficient urban scale
The urban giantism problem
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-11
Table 7.5
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-12
The Role of Cities




Industrial districts
Efficient urban scale
The urban giantism problem
First city bias
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-13
The Role of Cities





Industrial districts
Efficient urban scale
The urban giantism problem
First city bias
Causes of urban giantism
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-14
Figure 7.5
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-15
The Role of Cities






Industrial districts
Efficient urban scale
The urban giantism problem
First city bias
Causes of urban giantism
The urban informal sector
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-16
Table 7.6
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-17
Figure 7.6
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-18
The Role of Cities







Industrial districts
Efficient urban scale
The urban giantism problem
First city bias
Causes of urban giantism
The urban informal sector
Policies for the urban informal sector
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-19
The Role of Cities








Industrial districts
Efficient urban scale
The urban giantism problem
First city bias
Causes of urban giantism
The urban informal sector
Policies for the urban informal sector
Women in the informal sector
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-20
Urban Unemployment

Open unemployment rates in urban areas
are very high
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-21
Table 7.7
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-22
Migration and Development


Rural-to-urban migration was viewed
positively until recently
The current view is that this migration is
greater than the urban areas’ abilities to
– Create jobs
– Provide social services
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-23
Figure 7.7
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-24
Toward an Economic Theory of
Rural-Urban Migration

A verbal description of the Todaro model
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-25
Figure 7.8
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-26
Toward an Economic Theory of
Rural-Urban Migration


A verbal description of the Todaro model
A diagrammatic presentation of the Todaro
model
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-27
Figure 7.9
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-28
Toward an Economic Theory of
Rural-Urban Migration
LM
WA 
(W M )
LUS
Where
WA is agricultural income,
LM is employment in manufacturing
LUS is total urban labor pool
WM is the urban minimum wage
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-29
Toward an Economic Theory of
Rural-Urban Migration



A verbal description of the Todaro model
A diagrammatic presentation of the Todaro
model
Five policy implications
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-30
A Comprehensive Migration and
Employment Strategy







Create a urban-rural balance
Expand small, labor intensive industries
Eliminate factor-price distortion
Choose appropriate technologies
Modify the linkage between education and
employment
Reduce population growth
Decentralize authority
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.
7-31
Concepts for Review








Agglomeration
externalities
Congestion
Efficiency wage
Expected income
Induced migration
Informal sector
Labor turnover
Localization economies
Copyright © 2006 Pearson Addison-Wesley. All rights reserved.







Present value
Rural-urban migration
Social capital
Todaro migration model
Urban bias
Urbanization economies
Wage subsidy
7-32

similar documents