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Urban-rural gaps in the developing world: Does internal migration offer opportunities?

By: Lagakos, David.
Material type: materialTypeLabelBookPublisher: The Journal of Economic Perspectives Description: 34(3), Summer, 2020: p.174-192.Subject(s): Urban-rural gaps, Developing world In: The Journal of Economic PerspectivesSummary: This article provides an overview of the growing literature on urban-rural gaps in the developing world. I begin with recent evidence on the size of the gaps as measured by consumption, income, and wages, and argue that the gaps are real rather than just nominal. I then discuss the role of sorting more able workers into urban areas and review an array of recent evidence on outcomes from rural-urban migration. Overall, migrants do experience substantial gains on average, though smaller than suggested by the cross-sectional gaps. I conclude that future work should help further explore the frictions—in particular, information, financial, and in land markets—that hold back rural-urban migration and may help explain the persistence of urban-rural gaps. – Reproduced
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Articles Articles Indian Institute of Public Administration
34(3), Summer, 2020: p.174-192 Available AR123892

This article provides an overview of the growing literature on urban-rural gaps in the developing world. I begin with recent evidence on the size of the gaps as measured by consumption, income, and wages, and argue that the gaps are real rather than just nominal. I then discuss the role of sorting more able workers into urban areas and review an array of recent evidence on outcomes from rural-urban migration. Overall, migrants do experience substantial gains on average, though smaller than suggested by the cross-sectional gaps. I conclude that future work should help further explore the frictions—in particular, information, financial, and in land markets—that hold back rural-urban migration and may help explain the persistence of urban-rural gaps. – Reproduced

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