Rural-Urban Migration: Urban Unemployment and Rural Urban Disparties in the Philippines

Eduardo T. Gonzales

Philippine Review of Economics, 1990, vol. 27, issue 2, 177-207

Abstract: In the Harris-Todaro model, a demand-augmenting policy, to the extent that it raises job probabilities, and, hence, the positive urban-rural income differential has the effect of stimulating a higher migration flow from the countryside, even in the face of massive urban unemployment. This papers attempts to verify empirically the validity of the model in explaining Philippine rural-urban migration. The results indicate a strong monotonic relationship between urban-rural income differential and migration propensity, suggesting that urban unemployment have no deterrent effect on rural-urban migration. While urban employment expansion remains a valid policy, it is apparent that output can be increased only if the supply of labor to urban areas is slowed down and reabsorbed in alternative employment in agriculture.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:phs:prejrn:v:27:y:1990:i:2:p:177-207

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