Studies and researches
Vol. 15 Issue 2 - 12/2023
Internal Migration in Romania. Revisiting the Harris-Todaro Model of Migration
This study provides up-to-date
empirical evidence of the Harris-Todaro model of migration. Through this model
it is stated that people migrate from rural areas to urban zones because
expected wages are higher in urban areas and, also, they migrate where the
probability of finding a job is higher and there are low levels of unemployment
rate. In this regard, we took one country under consideration for testing this
hypothesis and this country is Romania. The data used in the study consisted in
a balanced panel database for all rural and urban areas from Romania, for the
interval of time 2002-2021. By applying period seemingly unrelated regression
equation is reached the conclusion that the basic model of Harris-Todaro holds
in the case of Romania. People migrate because of push factors (low income and
high unemployment rate in the origin) and pull factors (high income and low
levels of unemployment rate in the destination). Also, the extension of the
Harris-Todaro model is confirmed. Some policy implications based on our results
are provided.
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Keywords:
rural-urban migration, Harris-Todaro model, period seemingly unrelated regression, Romania
JEL:
O15, C23, J61
rural-urban migration, Harris-Todaro model, period seemingly unrelated regression, Romania
JEL:
O15, C23, J61