Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270913 
Year of Publication: 
1989
Series/Report no.: 
Harvard University Migration and Development Program Discussion Paper No. 44
Publisher: 
Harvard University, Center for Population Studies Cambridge, Massachusetts
Abstract: 
In this paper we link urban labor market dualism and the fixity of formal sector wages in expected income migration models with urban agglomeration economies. A possible productivity- efficiency rationale for the "institutional" wage is identified and explored. In addition, a rationalization for the informal sector is suggested in this context. We propose a motivation for determinating high urban wages as part of a choice-theoretic behavioral framework, perform illustrative simulations of factors influencing an equilibrium urban wage premium, and point out directions for further research delineated by our analytical propositions.
Document Type: 
Working Paper

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