Transcript Chapter 7
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