On the Todaro paradox

Raimondos, Pascalis (1993) On the Todaro paradox. Economics Letters, 42(2-3), pp. 261-267.

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Abstract

This paper presents a version of the Harris-Todaro model in which the rural labour market is characterised by monopsonistic behaviour. It is shown that the ‘Todaro paradox’, i.e. that the creation of jobs in the urban sector actually increases urban unemployment, does not hold if the urban employed outnumber the urban unemployed. The latter is the rule in all LDCs.

Impact and interest:

7 citations in Scopus
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5 citations in Web of Science®

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ID Code: 94027
Item Type: Journal Article
Refereed: Yes
DOI: 10.1016/0165-1765(93)90071-J
ISSN: 0165-1765
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 1993 Elsevier Science Publishers B.V.
Deposited On: 21 Mar 2016 23:54
Last Modified: 21 Mar 2016 23:54

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