The Harris-Todaro Model
Fields, Gary S.
[Excerpt] In terms of the current discussion of pro-poor economic growth, the Harris-Todaro model and other multi-sector labor market models can help policy-makers avoid two mistakes. One is to assume that development efforts should necessarily be channeled to the sectors where the poor are. The other is to assume that efforts should necessarily be focused on getting the poor out of the sectors in which they now are. Careful cost-benefit analysis based on well-specified labor market models is required to decide among such alternatives.
Kenya; urban unemployment; economic modeling; labor market
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