摘要:We reconsider the effect of economic development on urban unemployment by introducing households with nonhomothetic preferences into a sector-specific capital version of the Harris–Todaro model. Contrary to previous studies, this work shows that urban unemployment decreases with urban development but increases with rural development. As for labour growth, it normally increases urban unemployment.
关键词:Harris-Todaro model ; economic development ; nonhomothetic preferences ; urban unemployment ; sector-specific capital