By A.P. Thirlwall
This revised version comprises new fabric on overseas information and debt and has up-to-date records and the institutional fabric. The ebook goals to supply scholars with an knowing of the speculation and perform of monetary development.
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Additional info for Growth and Development: With Special Reference to Developing Economies
If the urban labour force is only one-fifth of the size of the rural labour force, a 1 per cent migration of rural labour would represent a 5 per cent increase in the urban labour force due to migration. On average, this is about the extent of the influx from the rural sector into the urban areas of developing countries. On top of this there is the natural increase in the work-force in the urban area to consider; this is of the ordef of between 2 and 3 per cent. If job opportunities in the urban areas are only increasing at 5 per cent, then 2 to 3 per cent of the urban labour force will become unemployed annually, thus raising the unemployment percentage year by year.
L The growth of demand for the output of the rural sector will be equal to the rate of growth of total population plus the rate of growth of per capita income multiplied by the income elasticity of demand for rural output. 0 per cent. Now suppose that the rural sector's productivity is growing at 2 per cent. e. 2 per cent. If the rural-sector labour force is growing at 3 per cent, then 1 per cent of the labour force will be becoming redundant annually. If the level of disguised unemployment in the rural sector were not to increase, this figure would constitute the potential volume of migrants.
Adding low-income workers in the manner described above, the percentage rises to 20 'E. Thorbecke, 'The Employment Problem: A Critical Evaluation of Four ILO Comprehensive Country Reports', Intel7llltional Labour Review, May 1973. 30 Introduction per cent for males and 50 per cent for females. The report on Iran gave priority to population control (which we discuss in Chapter 6). The report on Sri Lanka is distinctive for its thorough analysis of structural unemployment. There are three main types of structural imbalance in most developing countries which affect employment.
Growth and Development: With Special Reference to Developing Economies by A.P. Thirlwall