Reconsidering the effect of economic development on urban unemployment under nonhomothetic preferences

Nobuyuki Takeuchi ()
Additional contact information
Nobuyuki Takeuchi: Graduate School of International Cooperation Studies, Kobe University

Economics Bulletin, 2015, vol. 35, issue 1, 313-321

Abstract: We reconsider the effect of economic development on urban unemployment by introducing households with nonhomothetic preferences into a sector-specific capital version of the Harris–Todaro model. Contrary to previous studies, this work shows that urban unemployment decreases with urban development but increases with rural development. As for labour growth, it normally increases urban unemployment.

Keywords: Harris-Todaro model; economic development; nonhomothetic preferences; urban unemployment; sector-specific capital (search for similar items in EconPapers)
JEL-codes: J6 O1 (search for similar items in EconPapers)
Date: 2015-03-11
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P36.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-14-00594

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().