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Urban Unemployment, Factor Accumulation, and Welfare
Author(s) -
Yabuuchi Shigemi
Publication year - 1998
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00026
Subject(s) - economics , unemployment , factors of production , capital (architecture) , welfare , scarcity , capital accumulation , factor price , production (economics) , labour economics , macroeconomics , human capital , neoclassical economics , microeconomics , market economy , archaeology , history
This paper shows that, contrary to the conventional wisdom, economic expansion (factor accumulation) may be immiserizing in the mobile capital Harris‐Todaro model if scarcity of land is introduced in agricultural production. The effect of factor accumulation on the level of unemployment is examined, and precise conditions for the expected response are derived.