Intersectoral size differences and migration: Kuznets revisited

Anbarci, Nejat and Ulubasoglu, Mehmet 2005, Intersectoral size differences and migration: Kuznets revisited, in Proceedings of the Australian Conference of Economists, University of Melbourne/Conference Maker, Melbourne, Vic., pp. 1-40.

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Title Intersectoral size differences and migration: Kuznets revisited
Author(s) Anbarci, NejatORCID iD for Anbarci, Nejat
Ulubasoglu, MehmetORCID iD for Ulubasoglu, Mehmet
Conference name Australian Conference of Economists (2005: Melbourne, Vic.)
Conference location Melbourne, Vic.
Conference dates 26-28 September 2005
Title of proceedings Proceedings of the Australian Conference of Economists
Editor(s) Dixon, Robert
Publication date 2005
Conference series Australian Conference of Economists
Start page 1
End page 40
Publisher University of Melbourne/Conference Maker
Place of publication Melbourne, Vic.
Summary The empirical evidence on the Kuznets hypothesis ranges from positive or negative support to insignificant relationships. Most studies typically try this hypothesis in domains different than the one conceived by Kuznets, which pertains to the industrialization-led urbanization (i.e., significant rural-urban migration) phase of societies. In this paper, we offer a specific channel on Kuznets' hypothesis in his suggested domain. First, we establish theoretically that intersectoral urban-rural size differences result in an intersectoral income inequality, increasing the national inequality. This, in turn, prompts an intersectoral migration, which works as an equilibriating mechanism in the economy, decreasing the inequality in due course. We then successfully test the predictions of the model. The theoretical predictions yield a recursive triangular system, in which we test, i) how the sectoral size differences influence the agricultural income, ii) how a change in agricultural income acts on migration, and iii) what happens to the income distribution as a result of migration. We find a very strong support for the theoretical predictions and the Kuznets hypothesis in its own domain.
ISBN 9780734026088
Language eng
Field of Research 140202 Economic Development and Growth
HERDC Research category E1 Full written paper - refereed
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Document type: Conference Paper
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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