On the Todaro paradox
Raimondos, Pascalis (1993) On the Todaro paradox. Economics Letters, 42(2-3), pp. 261-267.
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.
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|Item Type:||Journal Article|
|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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