Where to Create Jobs : 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 the authors extend the basic Todaro-type model of rural-urban migration to the case of migration...

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Main Authors: Christiaensen, Luc, De Weerdt, Joachim, Kanbur, Ravi
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/961241497606064062/Where-to-create-jobs-cities-or-towns
http://hdl.handle.net/10986/27478
id okr-10986-27478
recordtype oai_dc
spelling okr-10986-274782021-05-25T09:01:00Z Where to Create Jobs : Cities or Towns? Christiaensen, Luc De Weerdt, Joachim Kanbur, Ravi PUBLIC INVESTMENT EMPLOYMENT CITY RURAL OPPORTUNITIES ECONOMIC GROWTH URBANIZATION JOB CREATION URBAN DEVELOPMENT 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 the authors 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. The authors first derive 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. The authors then develop sufficient statistics for the policy decisions based on these income parameters. The empirical remit of the model is illustrated with long running panel data from Kagera, Tanzania. Further, we show that the structure of the sufficient statistics is maintained in the case where the model is generalized to introduce heterogeneous workers and jobs. 2017-06-29T22:18:41Z 2017-06-29T22:18:41Z 2017-04-21 Working Paper http://documents.worldbank.org/curated/en/961241497606064062/Where-to-create-jobs-cities-or-towns http://hdl.handle.net/10986/27478 English en_US Jobs Working Paper;No. 2 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
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 PUBLIC INVESTMENT
EMPLOYMENT
CITY
RURAL
OPPORTUNITIES
ECONOMIC GROWTH
URBANIZATION
JOB CREATION
URBAN DEVELOPMENT
spellingShingle PUBLIC INVESTMENT
EMPLOYMENT
CITY
RURAL
OPPORTUNITIES
ECONOMIC GROWTH
URBANIZATION
JOB CREATION
URBAN DEVELOPMENT
Christiaensen, Luc
De Weerdt, Joachim
Kanbur, Ravi
Where to Create Jobs : Cities or Towns?
relation Jobs Working Paper;No. 2
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 the authors 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. The authors first derive 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. The authors then develop sufficient statistics for the policy decisions based on these income parameters. The empirical remit of the model is illustrated with long running panel data from Kagera, Tanzania. Further, we show 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 : Cities or Towns?
title_short Where to Create Jobs : Cities or Towns?
title_full Where to Create Jobs : Cities or Towns?
title_fullStr Where to Create Jobs : Cities or Towns?
title_full_unstemmed Where to Create Jobs : Cities or Towns?
title_sort where to create jobs : cities or towns?
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/961241497606064062/Where-to-create-jobs-cities-or-towns
http://hdl.handle.net/10986/27478
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