Abstract
The environment is not always uniform for all of the residents of a specific region. This study explicitly incorporates this aspect into a general equilibrium model of rural–urban migration with urban unemployment. Pollution from the urban manufacturing sector is assumed to have a negative externality on urban residents’ utility. Moreover, this study assumes that in an urban area, the effects of pollution on employed and unemployed workers are different. Thus, disparities in the environment develop for the residents within that area. Rural–urban migration is assumed to occur according to a rural–urban difference in expected utilities. This study performs a comparative static analysis. It is shown that, in an urban area, a decrease in the effect of pollution on an employee (unemployed worker) increases his/her utility; however, it decreases an unemployed worker’s (employee’s) utility.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.