Abstract
Two-sector general equilibrium models are built to investigate how the quality of rural property rights influences rural-urban migration and national welfare in developing countries. In the basic model where the urban wage rate is exogenously given, the impacts of strengthened rural property rights on rural-urban migration and national welfare are determined by comparisons of the rent-gaining effect and the productivity-enhancing effect. Specifically, if the rent-gaining effect dominates the productivity-enhancing effect, strengthened rural property rights will increase the number of rural-urban migrants and reduce national welfare. Otherwise, the opposite impacts are exerted if the productivity-enhancing effect dominates the rent-gaining effect. When we extend the basic model by considering the endogenously determined urban minimum wage rate, the urban minimum wage determination mechanism is also of great importance in determining the outcomes of the basic model. When we extend the basic model by introducing an urban informal sector, the value of labor's marginal product of the urban informal sector also plays a role in determining the impact of strengthened rural property rights on national welfare. In addition, urban unemployment is also taken into account by the basic and extended models.
| Original language | English |
|---|---|
| Pages (from-to) | 997-1029 |
| Number of pages | 33 |
| Journal | B.E. Journal of Economic Analysis and Policy |
| Volume | 15 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2015 Jan 1 |
| Externally published | Yes |
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Keywords
- developing countries
- national welfare
- rural property rights
- rural-urban migration
- urban unemployment
ASJC Scopus subject areas
- Economics and Econometrics
- Economics, Econometrics and Finance (miscellaneous)
Cite this
Rural property rights, migration, and welfare in developing countries. / Pi, Jiancai; Zhou, Yu.
In: B.E. Journal of Economic Analysis and Policy, Vol. 15, No. 3, 01.01.2015, p. 997-1029.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Rural property rights, migration, and welfare in developing countries
AU - Pi, Jiancai
AU - Zhou, Yu
PY - 2015/1/1
Y1 - 2015/1/1
N2 - Two-sector general equilibrium models are built to investigate how the quality of rural property rights influences rural-urban migration and national welfare in developing countries. In the basic model where the urban wage rate is exogenously given, the impacts of strengthened rural property rights on rural-urban migration and national welfare are determined by comparisons of the rent-gaining effect and the productivity-enhancing effect. Specifically, if the rent-gaining effect dominates the productivity-enhancing effect, strengthened rural property rights will increase the number of rural-urban migrants and reduce national welfare. Otherwise, the opposite impacts are exerted if the productivity-enhancing effect dominates the rent-gaining effect. When we extend the basic model by considering the endogenously determined urban minimum wage rate, the urban minimum wage determination mechanism is also of great importance in determining the outcomes of the basic model. When we extend the basic model by introducing an urban informal sector, the value of labor's marginal product of the urban informal sector also plays a role in determining the impact of strengthened rural property rights on national welfare. In addition, urban unemployment is also taken into account by the basic and extended models.
AB - Two-sector general equilibrium models are built to investigate how the quality of rural property rights influences rural-urban migration and national welfare in developing countries. In the basic model where the urban wage rate is exogenously given, the impacts of strengthened rural property rights on rural-urban migration and national welfare are determined by comparisons of the rent-gaining effect and the productivity-enhancing effect. Specifically, if the rent-gaining effect dominates the productivity-enhancing effect, strengthened rural property rights will increase the number of rural-urban migrants and reduce national welfare. Otherwise, the opposite impacts are exerted if the productivity-enhancing effect dominates the rent-gaining effect. When we extend the basic model by considering the endogenously determined urban minimum wage rate, the urban minimum wage determination mechanism is also of great importance in determining the outcomes of the basic model. When we extend the basic model by introducing an urban informal sector, the value of labor's marginal product of the urban informal sector also plays a role in determining the impact of strengthened rural property rights on national welfare. In addition, urban unemployment is also taken into account by the basic and extended models.
KW - developing countries
KW - national welfare
KW - rural property rights
KW - rural-urban migration
KW - urban unemployment
UR - http://www.scopus.com/inward/record.url?scp=84931067264&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84931067264&partnerID=8YFLogxK
U2 - 10.1515/bejeap-2014-0062
DO - 10.1515/bejeap-2014-0062
M3 - Article
AN - SCOPUS:84931067264
VL - 15
SP - 997
EP - 1029
JO - B.E. Journal of Economic Analysis and Policy
JF - B.E. Journal of Economic Analysis and Policy
SN - 1935-1682
IS - 3
ER -