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dc.contributor.authorKatz, Eliakim
dc.contributor.authorStark, Oded
dc.date.accessioned2012-03-14T19:55:38Z
dc.date.available2012-03-14T19:55:38Z
dc.date.issued1986
dc.identifier.citationKatz, Eliakim and Oded Stark. "Labor Migration and Risk Aversion in Less Developed Countries," Journal of Labor Economics, Vol. 4, No. 1 (1986), pg. 134-149.en_US
dc.identifier.urihttp://commons.lib.niu.edu/handle/10843/13294
dc.identifier.urihttp://hdl.handle.net/10843/13294
dc.description.abstractIn this paper we question the pioneering work of Todaro, which states that rural-to-urban labor migration in less developed countries (LDCs) is an individual response to a higher urban expected income. We demonstrate that rural-to-urban labor migration is perfectly rational even if urban expected income is lower than rural income. We achieve this under a set of fairly stringent conditions: an individual decision-making entity, a one-period planning horizon, and global risk aversion. We obtain the result that a small chance of reaping a high reward is sufficient to trigger rural-to-urban labor migration.en_US
dc.language.isoenen_US
dc.publisherUniversity of Chicago Pressen_US
dc.titleLabor Migration and Risk Aversion in Less Developed Countriesen_US
dc.typeArticleen_US
dc.altlocation.urihttp://www.jstor.org/stable/2534880en_US
dc.contributor.departmentDepartment of Economics


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