Should public investment be targeted to big cities or to small towns, if the objective is to minimize national poverty? To answer this policy question we extend the basic Todaro-type model of rural-urban migration to the case of migration from rural areas to two potential destinations, secondary town and big city. We first derive labor income, migration cost and poverty line conditions under which a poverty gradient from rural to town to city will...
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2017/04/21
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Documento de Trabalho
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115360
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1
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1
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2017/05/31
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Disclosed
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Where to create jobs : cities or towns?
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model of labor migration
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