Where to Create Jobs to Reduce Poverty : Cities or Towns?

Where to Create Jobs to Reduce Poverty : Cities or Towns?

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, this paper extends the basic Todaro-type model of rural-urban migration to the case of migration...

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Bibliographic Details
Main Authors: Christiaensen, Luc, De Weerdt, Joachim, Kanbur, Ravi
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
BIG CITIES
TOWNS
POVERTY REDUCTION
POVERTY GRADIENT
TODARO MODEL
MIGRATION EQUILIBRIUM
INCOME DISTRIBUTION
Online Access:http://documents.worldbank.org/curated/en/434811495466355613/Where-to-create-jobs-to-reduce-poverty-cities-or-towns
http://hdl.handle.net/10986/26839
id okr-10986-26839
recordtype oai_dc
spelling okr-10986-268392021-06-08T14:42:46Z Where to Create Jobs to Reduce Poverty : Cities or Towns? Christiaensen, Luc De Weerdt, Joachim Kanbur, Ravi BIG CITIES TOWNS POVERTY REDUCTION POVERTY GRADIENT TODARO MODEL MIGRATION EQUILIBRIUM INCOME DISTRIBUTION 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, this paper extends 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. The analysis first derives the labor income, migration cost and poverty line conditions under which a poverty gradient from rural to town to city will exist as an equilibrium phenomenon. Then sufficient statistics are developed for the policy decisions based on these parameters. The empirical remit of the model is illustrated with long-running panel data from Kagera, Tanzania. Further, the paper shows that the structure of the sufficient statistics is maintained in the case where the model is generalized to introduce heterogeneous workers and jobs. 2017-06-01T22:30:49Z 2017-06-01T22:30:49Z 2017-05 Working Paper http://documents.worldbank.org/curated/en/434811495466355613/Where-to-create-jobs-to-reduce-poverty-cities-or-towns http://hdl.handle.net/10986/26839 English en_US Policy Research Working Paper;No. 8069 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Tanzania
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic BIG CITIES
TOWNS
POVERTY REDUCTION
POVERTY GRADIENT
TODARO MODEL
MIGRATION EQUILIBRIUM
INCOME DISTRIBUTION
spellingShingle BIG CITIES
TOWNS
POVERTY REDUCTION
POVERTY GRADIENT
TODARO MODEL
MIGRATION EQUILIBRIUM
INCOME DISTRIBUTION
Christiaensen, Luc
De Weerdt, Joachim
Kanbur, Ravi
Where to Create Jobs to Reduce Poverty : Cities or Towns?
geographic_facet Africa
Tanzania
relation Policy Research Working Paper;No. 8069
description 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, this paper extends 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. The analysis first derives the labor income, migration cost and poverty line conditions under which a poverty gradient from rural to town to city will exist as an equilibrium phenomenon. Then sufficient statistics are developed for the policy decisions based on these parameters. The empirical remit of the model is illustrated with long-running panel data from Kagera, Tanzania. Further, the paper shows that the structure of the sufficient statistics is maintained in the case where the model is generalized to introduce heterogeneous workers and jobs.
format Working Paper
author Christiaensen, Luc
De Weerdt, Joachim
Kanbur, Ravi
author_facet Christiaensen, Luc
De Weerdt, Joachim
Kanbur, Ravi
author_sort Christiaensen, Luc
title Where to Create Jobs to Reduce Poverty : Cities or Towns?
title_short Where to Create Jobs to Reduce Poverty : Cities or Towns?
title_full Where to Create Jobs to Reduce Poverty : Cities or Towns?
title_fullStr Where to Create Jobs to Reduce Poverty : Cities or Towns?
title_full_unstemmed Where to Create Jobs to Reduce Poverty : Cities or Towns?
title_sort where to create jobs to reduce poverty : cities or towns?
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/434811495466355613/Where-to-create-jobs-to-reduce-poverty-cities-or-towns
http://hdl.handle.net/10986/26839
_version_ 1764462884428972032

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