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Agrarian Structures, Urbanization, and Inequality

Cem Oyvat ()

World Development, 2016, vol. 83, issue C, 207-230

Abstract: This study examines the impact of agrarian structures on income inequality over the long run. First, it exhibits the relationship between land and income distribution by developing a theoretical model based on Harris and Todaro (1970) and Lewis (1954). High land inequality increases income Gini coefficients in the urban sector as well as the rural sector, not only by creating congestion in the urban subsistence sector, but also by feeding the growth of the urban reserve army of labor, which pulls down the wages in the urban capitalist sector.

Keywords: distribution; urbanization; informality; economic development (search for similar items in EconPapers)
Date: 2016
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