The Harris-Todaro Hypothesis

M. Khan

No 2007:16, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: The Harris-Todaro hypothesis replaces the equality of wages by the equality of ‘expected’ wages as the basic equilibrium condition in a segmented but homogeneous labour market, and in so doing it generates an equilibrium level of urban unemployment when a mechanism for the determination of urban wages is specified. This article reviews work in which the Harris-Todaro hypothesis is embedded in canonical models of trade theory in order to investigate a variety of issues in development economics. These include the desirability (or the lack thereof) of foreign investment, the complications of an informal sector, and the presence of clearly identifiable ethnic groups

Keywords: Harris-Todaro; Wages; Labour Economics; Labour Market; Rural to Urban Migration (search for similar items in EconPapers)
JEL-codes: D00 (search for similar items in EconPapers)
Pages: 11 pages.
Date: 2007
New Economics Papers: this item is included in nep-dev, nep-mig and nep-ure
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Citations: View citations in EconPapers (4)

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https://www.pide.org.pk/pdf/Working%20Paper/Working%20Paper%20No.%2016.pdf First Version, 2007 (application/pdf)

Related works:
Working Paper: The Harris-Todaro Hypothesis (2007)
Working Paper: The Harris-Todaro Hypothesis (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pid:wpaper:2007:16

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