CONSIDERING THE INEFFICIENCIES IN LABOR MARKET FOR AN EXPLANATION OF MIGRATION FACT FROM RURAL TO URBAN AREAS IN TURKEY

Assist. Prof. Sibel Cengiz and Assoc. Prof. Cem Mehmet Baydur
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Assist. Prof. Sibel Cengiz: Mugla University Faculty of Economics and Administrative Sciences Department of Economics, Mugla, Turkey
Assoc. Prof. Cem Mehmet Baydur: Mugla University Faculty of Economics and Administrative Sciences Department of Economics, Mugla, Turkey

Revista Tinerilor Economisti (The Young Economists Journal), 2009, vol. 1, issue 13, 113-129

Abstract: In this study, it is intended to explain determinant points between market price of labor and shadow price of labor and explain migration from rural to urban according to this wage difference. Unemployment or rigidity in urban labor market causes different wage level from equilibrium wage level. This high level wage increases alternative cost of rural against urban and encourages migration from rural to urban. The state of instigating the migration from rural to urban that causing by the increase on wages levels which is in proportion to secession of competition level has been calculated by considering the Turkey example for different sectors. Consequently, it has been determined that the wage level modified according to the distortion in competition is one of the factors effecting the migration to rural to urban.

Keywords: Shadow Price; Migration from Rural to Urban; Labor Market (search for similar items in EconPapers)
JEL-codes: J21 R23 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2009:i:13:p:113-129

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