Stark, Oded; Gupta, Manash Ranjan; Levhari, David - In: Economics Letters 37 (1991) 4, pp. 477-482
This paper challenges the prediction of Todaro's model of rural-to-urban migration that an ‘increase in urban employment increases urban unemployed.’ It is shown that if the urban demand for labor is isoelastic or inelastic, creation of urban jobs causes urban unemployment to decline and...