The Harris-Todaro Hypothesis

M. Khan

MPRA Paper from University Library of Munich, Germany

Abstract: The Harris-Todaro hypothesis replaces the equality of wages by the equality of ‘expected’ wages as the basic equilibrium condition in a segmented but homogeneous labour market, and in so doing it generates an equilibrium level of urban unemployment when a mechanism for the determination of urban wages is specified. This article reviews work in which the Harris-Todaro hypothesis is embedded in canonical models of trade theory in order to investigate a variety of issues in development economics. These include the desirability (or the lack thereof) of foreign investment, the complications of an informal sector, and the presence of clearly identifiable ethnic groups.

Keywords: Harris-Todaro; Wages; Labour Economics; Labour Market; Rural to Urban Migration (search for similar items in EconPapers)
JEL-codes: J3 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-dev, nep-geo and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/2201/1/MPRA_paper_2201.pdf original version (application/pdf)

Related works:
Working Paper: The Harris-Todaro Hypothesis (2007)
Working Paper: The Harris-Todaro Hypothesis (2007)
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:pra:mprapa:2201

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().