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In this paper I present a new approach to rural-to-urban migration in developing countries. This approach sheds new light on the role of urban-to-rural remittances in bringing about technological change in the agricultural sector of these countries. At the core of the new approach is a utility maximizing family that by means of the migration of a family member bypasses the constraints on technological change imposed by lack of credit and risk. The paper discusses how to bring the new approach to the data.
Qded Stark (Tue,) studied this question.