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Title: |
The Earnings Experience of Rural-Urban
Migrants in Korea |
| Author: |
Lee, Bun Song;
Phillips, Joseph M. |
| Author
Affiliation: |
Seoul City U; U
Creighton |
| Source: |
International Economic Journal, Winter 1997, v. 11, no. 4, pp. 85-101 |
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Publication Date: |
Winter 1997 |
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Abstract: |
Migration models in the Harris-Todaro
tradition imply that urban informal sector earnings are less than rural
sector earnings. Examining the situation for Korea, we find that both
urban formal and informal sector earnings exceed earnings opportunities
in rural areas, making rural-urban migration the best decision for the
individual and for the Korean economy in terms of maximizing output. A
Dutch Disease model is offered as an explanation for the unexpected
strength of urban informal sector earnings The implication for policy
makers is that government efforts may be better directed toward
mitigating the externalities caused by over-crowding, rather than
attempting to influence population movements. |
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