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Development Economics > Migration and Urbanization > Flashcards

Migration and Urbanization Flashcards

1
Q

how has world urban population grown

A

1950 = 29%, 55% = 2019
- the higher the income = more likely live in urban
- hard to track because of no documentation = census

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2
Q

what are the waves of urbanisation

A

first wave = mid 18th century
- western countries
- few hundred million people

second wave = rural migration of developing countries now
- far faster than 1st wave
- 2 billion movement of people

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3
Q

benefits of migration

A
  • skilled labour pool
  • increasing returns to scale
  • transport costs
  • information
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4
Q

concerns of migration

A
  • governments dont like growing populations = want it to slow down
  • 90/116 countries had policies to slow migration = UN reports
  • unemployment urban
  • crime
  • congestion and pollution
  • lack of clean water
  • not enough infrastructure
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5
Q

millenium development goals slums

A

achieved
reduced number of people living in slums by 100 million

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6
Q

future of urbanisation
- depopulation of rural areas

A

from 2005 - 2050 = 13% rise for developed countries
= 135% for developing

  • cities in developing world will be home to over 83% of the worlds population
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7
Q

what are the 2 theories concerning the role played by rural - urban migration for growth

A

Lewis model = thinks migration is good = capital accumulation needed for growth = development
- caused by high urban wages

Todaro model = creates serious problem of unemployment = should discourage rural-urban migration
- caused by high urban wages

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8
Q

what is the Lewis model

A
  • role of agriculture is very important in facilitating development of non-agri sectors
  • provides labour and surplus of food
  • industry supports agriculture too = supplies inputs, supplies their demand
  • economic development as progressive transformation of traditional to modern
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9
Q

what is dual economy

A

coexistence of traditional and modern

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10
Q

Description of lewis model

A
  • movement of labour from a to i
  • t supplies l and m soaks up supply
  • produces when MPL is close to 0 = high population pressure = small family farms overemployed
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11
Q

assumptions of Lewis model

A

labour is unlimited in supply - from traditional sector
rate of savings and investment limits the pace of development = capital accumulation is engine of growth

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12
Q

how is it possible to employ when MPL = 0

A
  • not thinking as an entrepreuner = profit maximising = MPL = wage
  • whereas family farm values the incomes received by each of its members, not really a set wage = but average output
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13
Q

what is diguised unemployment

A

the idea that adding more labour wont do anything to add to output
- there is not efficient allocation of resources
- when MPL argiculture < MPL in industry there is gain to be had from moving labour to industry

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14
Q

difference between surplus labour and surplus labourers

A

want to get rid of surplus labourers
but not decrease agri output
otherwise food prices increase, wages industrial increase, slows down CA
remaining labourers need to adjust their input

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15
Q

3 main features of traditional sector

A
  1. surplus labour
  2. wage rate is average output
  3. disguised unemployment
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16
Q

describing the 3 models

  1. agri output and labour
A

1
- flipped pf
- A - B = surplus gets moved to industry with no impact on output
2
- disguised unemployment - MP<wage rate industrial - not economically efficient place to operate
- B - C can be moved to industry
3.
- commercialisation
- cant take any more people away from agri
- need labour to make output

17
Q

describing the 3 models

  1. average agricultural surplus and industry labour
A
  1. a-b
    agricultural surplus is constant
  2. b-c
    output is starting to fall and surplus
    more people joining industrial labour force
  3. c
    no more people can join - all needed in agri
18
Q

describing the 3 models

  1. industrial wage and labour
A
  1. a-b
    constant wage rate - absorbs all the new labourers that show up with surplus food
  2. b-c
    output is reducing so prices are increasing - wages have to increase because of inflation - high demand for food
  3. c
    significant increase in wages to compete with agri - dont want people to move back
19
Q

what are the 2 turning points in the model

A

turning point at B = when all surplus is gone
turning point at C = end up in competition with each other

20
Q

explaining the demand curves in industrial wage and labour graph

A
  1. absorb all surplus labour at wage w1
  2. they make profits and reinvest so need more labour
  3. demand curve shifts right = still in suplus labour phase = w1 = employs more labour
  4. higher demand curve = now in disguised unemployment = output decreases = wages increase w2
  5. because of wage increase industry hires less people
  6. both now in competition
21
Q

harris and todaro model

A
  • the high urban wages creates urban unemployment - more people want to move but not enough jobs
  • chance that once migrated end up unemployed / informal sector
22
Q

why are there higher urban wages

A
  • government policy = min wage
  • can higher better workers = effort incentive
  • unionized

compared to
- low volatile wages
- gov policy difficult to implement
- family labour - no wage increases
- monitorable

23
Q

why is there unemployment

A
  • if there were different wages = incentive to move to higher wage employment
  • if wages were the same = unemployment = cant be located in agriculture so move to urban
  • rational migration even though wages are the same
24
Q

what is the decision of potential migrants

A
  • choose between relative safe option and gamble to move to urban where high paying job - may get it or not
  • those that dont get a job = informal
25
Q

what is the expected wage of urban migration

A

the probability of getting a formal wage times the formal wage + the probability of not getting a formal job times the prob of getting an informal job times the informal wage rate

26
Q

equilibrium when expected urban wage = agricultural wage

A
  • allocation of l between three sectors
27
Q

what are the causes of rural urban migration
pull factors

A
  • higher wage rates urban
  • managing risk by diversifying income
  • securing target income
  • consumption smoothing
  • social variables
  • temporary circular migration
28
Q

what are the characteristics of people more likely to migrate

A

men
young
highly skilled
large families
unmarried
history of migration

29
Q

non pecuniary attractions

A

imporved access to range of public services
health education
bright lights
if its closer more likely to move

30
Q

what are push factors

A

financial pressures
poverty
unemployment
government policies that neglect agriculture
war

Development Economics (5 decks)

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