Chapter 8 Slide 1 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 2 Copyright © 2003 Pearson Education, Inc. Urbanization and Rural-Urban Migration: Theory and Policy Chapter 8

Chapter 8 Slide 3 Copyright © 2003 Pearson Education, Inc. The Migration and Urbanization Dilemma n Urbanization: trends and projections

Chapter 8 Slide 4 Copyright © 2003 Pearson Education, Inc. Figure 8.1 Urbanization versus GNP

Chapter 8 Slide 5 Copyright © 2003 Pearson Education, Inc. Figure 8.2 Urbanization Across Time and Income Levels

Chapter 8 Slide 6 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 7 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 8 Copyright © 2003 Pearson Education, Inc. Figure 8.3 Megacities: Cities with 10 Million or More Inhabitants

Chapter 8 Slide 9 Copyright © 2003 Pearson Education, Inc. Figure 8.4 Estimated and Projected Urban and Rural Population of More and Less Developed Regions,

Chapter 8 Slide 10 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 11 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 12 Copyright © 2003 Pearson Education, Inc. The Role of Cities n Industrial districts n Efficient urban scale n The urban giantism problem

Chapter 8 Slide 13 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 14 Copyright © 2003 Pearson Education, Inc. The Role of Cities n Industrial districts n Efficient urban scale n The urban giantism problem n First city bias

Chapter 8 Slide 15 Copyright © 2003 Pearson Education, Inc. The Role of Cities n Industrial districts n Efficient urban scale n The urban giantism problem n First city bias n Causes of urban giantism

Chapter 8 Slide 16 Copyright © 2003 Pearson Education, Inc. Figure 8.5 Politics and Urban Concentration

Chapter 8 Slide 17 Copyright © 2003 Pearson Education, Inc. The Role of Cities n Industrial districts n Efficient urban scale n The urban giantism problem n First city bias n Causes of urban giantism n The urban informal sector

Chapter 8 Slide 18 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 19 Copyright © 2003 Pearson Education, Inc. Figure 8.6 The Importance of Informal Employment in Selected Cities

Chapter 8 Slide 20 Copyright © 2003 Pearson Education, Inc. The Role of Cities n Industrial districts n Efficient urban scale n The urban giantism problem n First city bias n Causes of urban giantism n The urban informal sector n Policies for the urban informal sector

Chapter 8 Slide 21 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 22 Copyright © 2003 Pearson Education, Inc. The Role of Cities n Industrial districts n Efficient urban scale n The urban giantism problem n First city bias n Causes of urban giantism n The urban informal sector n Policies for the urban informal sector n Women in the informal sector

Chapter 8 Slide 23 Copyright © 2003 Pearson Education, Inc. Urban Unemployment n Open unemployment rates in urban areas are very high

Chapter 8 Slide 24 Copyright © 2003 Pearson Education, Inc.

Chapter 8 Slide 25 Copyright © 2003 Pearson Education, Inc. Migration and Development n Rural-to-urban migration was viewed positively until recently n The current view is that this migration is greater than the urban areas’ abilities to –create jobs –provide social services

Chapter 8 Slide 26 Copyright © 2003 Pearson Education, Inc. Figure 8.7 Components of Migration

Chapter 8 Slide 27 Copyright © 2003 Pearson Education, Inc. Toward an Economic Theory of Rural-Urban Migration n A verbal description of the Todaro model

Chapter 8 Slide 28 Copyright © 2003 Pearson Education, Inc. Figure 8.8 Schematic Framework for Analyzing the Migration Decision

Chapter 8 Slide 29 Copyright © 2003 Pearson Education, Inc. Toward an Economic Theory of Rural-Urban Migration n A verbal description of the Todaro model n A diagrammatic presentation of the Todaro model

Chapter 8 Slide 30 Copyright © 2003 Pearson Education, Inc. Figure 8.9 The Harris-Todaro Migration Model

Chapter 8 Slide 31 Copyright © 2003 Pearson Education, Inc. Toward an Economic Theory of Rural-Urban Migration WhereW A is agricultural income, L M is employment in manufacturing L US is total urban labor pool W M is the urban minimum wage

Chapter 8 Slide 32 Copyright © 2003 Pearson Education, Inc. Toward an Economic Theory of Rural-Urban Migration n A verbal description of the Todaro model n A diagrammatic presentation of the Todaro model n Five policy implications

Chapter 8 Slide 33 Copyright © 2003 Pearson Education, Inc. A Comprehensive Migration and Employment Strategy n Create a urban-rural balance n Expand small, labor intensive industries n Eliminate factor-price distortion n Choose appropriate technologies n Modify the linkage between education and employment n Reduce population growth n Decentralize authority

Chapter 8 Slide 34 Copyright © 2003 Pearson Education, Inc. Concepts for Review n Agglomeration externalities n Congestion n Efficiency wage n Expected income n Induced migration n Informal sector n Labor turnover n Localization economies n Present value n Rural-urban migration n Social capital n Todaro migration model n Urban bias n Urbanization economies n Wage subsidy