@article{Enver:6475,
      recid = {6475},
      author = {Enver, Ayesha and Partridge, Mark D.},
      title = {Rural-Urban Migration and the Intergenerational  Transmission of Wealth},
      address = {2008},
      number = {382-2016-22572},
      series = {Selected Paper},
      pages = {30},
      year = {2008},
      note = {Replaced with revised version of paper 07/24/08.},
      abstract = {This paper extends the literature on poverty traps and  regional economics by
incorporating rural-urban migration,  human capital externalities, and regional
agglomeration  effects into Galor and Zeira’s (1993) overlapping  generations model to
examine the welfare impacts of various  person-based and place-based policies. We
formalize the  conditions that may induce a rural brain-drain. The model  is calibrated and
simulated to demonstrate how regions with  different production and housing technologies
may respond  differently to a given policy. Our results show that for  certain parameter
values, well intended policies targeting  poor households may instead worsen their longrun
welfare  outcomes if households prefer not to migrate to the  wealthier urban region
when awarded an education subsidy.  In other cases, person-based policies are shown to
improve  the long-run welfare of poorer households by facilitating  migration to the city.
Place-based policies that enhance  rural firm productivity without targeting  individual
households may yield higher average welfare for  rural residents. In some instances, the
benefits of  place-based policies may not trickle down to less wealthier  households,
whereas in other cases, they are more effective  than the subsidy program in improving
the welfare of the  poorest.},
      url = {http://ageconsearch.umn.edu/record/6475},
      doi = {https://doi.org/10.22004/ag.econ.6475},
}