In this paper we utilize urban economics to identify socially optimal levels of urbanization and, by implication, optimal levels of rural-to-urban migration. Our analysis addresses, first, the case where there is only one urban center (region) in the economy and, second, where there are two....

In this paper we link urban labor market dualism and the fixity of formal sector wages in expected income migration models with urban agglomeration economies. A possible productivity- efficiency rationale for the "institutional" wage is identified and explored. In addition, a rationalization for...