Income Distribution in the Harris-Todaro Model
20 Pages Posted: 19 May 1999
Date Written: March 15, 1999
This paper uses the Harris-Todaro model of rural-urban migration to explore how inequality is likely to evolve during the course of various kinds of economic development. It is shown that development in agriculture is likely to be reduce inequality. The paper also shows that the Kuznets curve is unlikely to be a general result, and clarifies the reasons for the observed link between dualism and inequality.
JEL Classification: O15
Suggested Citation: Suggested Citation