Migration, employment and development: a three-sector analysis

This paper introduces dynamics and migration into a three-sector general equilibrium model of LDC which systematically incorporates an Informal sector and provides a framework alternative to the Harris–Todaro-type framework. The results of the paper underscore the dynamic nature of the Informal sector and suggest that the ranking of policies to improve welfare would be considerably different in this model compared to those in the Harris–Todaro-type models. It is also argued that the framework developed here can be extended to explore a number of other issues in the context of development.