Migration and pollution
We explore the links between migration of labour and location specific (urban) pollution, suggesting a sense in which pollution can be welfare improving. In a conventional Harris-Todaro model of urban-rural migration, individuals migrate so as to equate the expected urban wage (given a downward rigid real wage in the urban sector) to the real wage. Unemployment is endogenously determined. Interpreting unemployment as damage, urban pollution (damage denoted in units of labour) can also support...[Show more]
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