Harris-Todaro model
The Harris-Todaro model is an economic theory that explains rural-to-urban migration in developing countries. It suggests that individuals move to cities in search of better job opportunities, but they consider the expected income and the probability of finding a job. The model highlights the role of urban unemployment, indicating that not all migrants will find work immediately upon arrival.
According to the model, the decision to migrate is influenced by the potential wage difference between rural and urban areas, balanced against the risks of unemployment in cities. This framework helps policymakers understand migration patterns and the challenges of urbanization in developing economies.