Intersectoral size differences and migration: Kuznets revisited

Anbarci, N.; Ulubaşoğlu, M.A.

Abstract

That researchers look for the inverted-U shape in inequality in the arbitrary periods of arbitrary countries underlies the divergent empirical evidence across studies. To point to the right context for the pattern, this paper establishes a formal mechanism in line with Kuznets' explanation that relates to the industrialization-cum-urbanization phases of closed trade regimes. The mechanism involves an interaction among urban–rural sectoral size differences, agricultural tastes/income, and migration, and predicts an inverted-U shape in inequality in the following way: (i) widening differences in the sizes of urban and rural sectors due to exogenous shocks affect negatively the agricultural tastes/income, worsening inequality; (ii) increasing sectoral size differences and decreasing agricultural tastes/income jointly foster intersectoral migration; (iii) migration acts, in turn, as an equilibrating effect, improving the income distribution. Empirically testing these predictions, non-Sub-Saharan developing countries' data support the mechanism, while data from developed and Sub-Saharan African countries provide little support, as per our prior expectations. This highlights a contrasting evidence on the inverted-U shape across country groups of differing development stages.

Citation

Anbarci, N., & Ulubaşoğlu, M. (2011). Intersectoral size differences and migration: Kuznets revisited. The Journal of International Trade & Economic Development, 20(2), 251-292. https://doi.org/10.1080/09638199.2011.538232

• Journal Article Type: Article
• Online Publication Date: Feb 18, 2011
• Publication Date: 2011-04
• Deposit Date: Aug 17, 2018
• Journal: The Journal of International Trade & Economic Development
• Print ISSN: 0963-8199
• Electronic ISSN: 1469-9559
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 20
• Issue: 2
• Pages: 251-292
• DOI: https://doi.org/10.1080/09638199.2011.538232
• Public URL: https://durham-repository.worktribe.com/output/1322974