TY - JOUR
T1 - On the shadow wage of urban jobs in less-developed countries
AU - Katz, Eliakim
AU - Stark, Oded
PY - 1986/9
Y1 - 1986/9
N2 - This paper examines the relationship between the social opportunity cost associated with the creation of an urban job, i.e., the shadow wage, and the market wage, taking into consideration induced rural-to-urban migration. We suggest that the shadow wage is lower than the market wage: first, when agents are risk averse and second, even if they are risk neutral but their contemporaneous consumption function is concave and the social value of savings exceeds the social value of consumption, as is likely to be the case in less-developed countries.
AB - This paper examines the relationship between the social opportunity cost associated with the creation of an urban job, i.e., the shadow wage, and the market wage, taking into consideration induced rural-to-urban migration. We suggest that the shadow wage is lower than the market wage: first, when agents are risk averse and second, even if they are risk neutral but their contemporaneous consumption function is concave and the social value of savings exceeds the social value of consumption, as is likely to be the case in less-developed countries.
UR - http://www.scopus.com/inward/record.url?scp=46149131238&partnerID=8YFLogxK
U2 - 10.1016/0094-1190(86)90001-X
DO - 10.1016/0094-1190(86)90001-X
M3 - מאמר
AN - SCOPUS:46149131238
VL - 20
SP - 121
EP - 127
JO - Journal of Urban Economics
JF - Journal of Urban Economics
SN - 0094-1190
IS - 2
ER -