Urban Unemployment, Factor Accumulation, and Welfare

Shigemi Yabuuchi

Review of Development Economics, 1998, vol. 2, issue 1, 31-40

Abstract: This paper shows that, contrary to the conventional wisdom, economic expansion (factor accumulation) may be immiserizing in the mobile capital Harris‐Todaro model if scarcity of land is introduced in agricultural production. The effect of factor accumulation on the level of unemployment is examined, and precise conditions for the expected response are derived.

Date: 1998
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