Harris-Todaro Model of Economic Development
The Harris-Todaro model of rural-urban migration
is usually studied in the context of employment and unemployment
in developing countries. In the model, the purpose is to explain
the serious urban unemployment problem in developing countries.
The applicability of this model depends on the development stage
and economic success in the developing country.
The distinctive concept in the model is that the rate of migration
flow is determined by the difference between expected urban wages
and rural wages. The model is applicable to less successful developing
countries or to countries at the earlier stages of development.
The policy implications are different from those of the LRF model.
One implication in the model is that job creation in the urban sector
worsens the situation because more rural migration would thus be
induced. In this context, China's policy of rural development and
rural industrialization to deal with urban unemployment provides
an example.
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