The Impacts of Rural Property Rights on Urban Unemployment, Wage Inequality, and Welfare in Developing Countries

Jiancai Pi, Ge Yang and Yin Jun
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Ge Yang: Department of Economics, Nanjing University, 22 Hankou Road, Nanjing210093, China
Yin Jun: Department of Economics, Nanjing University, 22 Hankou Road, Nanjing210093, China

The B.E. Journal of Economic Analysis & Policy, 2017, vol. 17, issue 1, 15

Abstract: This paper establishes a three-sector general equilibrium model to explore how rural property rights influence urban unemployment, skilled-unskilled wage inequality and social welfare in developing countries. Strengthened rural property rights generate the rent-gaining effect and the productivity-enhancing effect, and the interaction of these two effects determines the changes of urban unemployment, skilled-unskilled wage inequality and social welfare. In addition to the aforementioned two effects, the agricultural sector’s wage elasticity of unskilled labor demand also matters for the change of wage inequality.

Keywords: rural property rights; urban unemployment; skilled-unskilled wage inequality; social welfare; general equilibrium model (search for similar items in EconPapers)
JEL-codes: E24 J31 P26 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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DOI: 10.1515/bejeap-2015-0225

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