Migration, Human Capital, and Poverty in a Dual-Economy Model of a Developing Country

37 Pages Posted: 2 Feb 2006

See all articles by Paul R. Masson

Paul R. Masson

International Monetary Fund (IMF) - Research Department; The Brookings Institution

Date Written: September 2001

Abstract

The coexistence of urban and rural poverty and migration to cities is studied in a dual economy model where the acquisition of skills is costly and involves migration to urban areas. In this model, both the distribution of innate abilities and the distribution of wealth matter for the migration decision, and costs of backmigration may produce an urban poverty trap if unemployment lowers household wealth below the cost of skills acquisition.

Keywords: migration, poverty, development

JEL Classification: I32, J24, J62, O18, R23

Suggested Citation

Masson, Paul R., Migration, Human Capital, and Poverty in a Dual-Economy Model of a Developing Country (September 2001). IMF Working Paper No. 01/128, Available at SSRN: https://ssrn.com/abstract=879895

Paul R. Masson (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

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The Brookings Institution ( email )

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