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The B.E. Journal of Economic Analysis & Policy

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Volume 17, Issue 1 (Nov 2016)

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Volume 1 (2001)

The Impacts of Rural Property Rights on Urban Unemployment, Wage Inequality, and Welfare in Developing Countries

Jiancai Pi
  • Corresponding author
  • Department of Economics, Nanjing University, 22 Hankou Road, Nanjing210093, China
  • Email:
/ Yang Ge
  • Department of Economics, Nanjing University, 22 Hankou Road, Nanjing210093, China
/ Jun Yin
  • Department of Economics, Nanjing University, 22 Hankou Road, Nanjing210093, China
Published Online: 2016-11-29 | DOI: https://doi.org/10.1515/bejeap-2015-0225

Abstract

This paper establishes a three-sector general equilibrium model to explore how rural property rights influence urban unemployment, skilled-unskilled wage inequality and social welfare in developing countries. Strengthened rural property rights generate the rent-gaining effect and the productivity-enhancing effect, and the interaction of these two effects determines the changes of urban unemployment, skilled-unskilled wage inequality and social welfare. In addition to the aforementioned two effects, the agricultural sector’s wage elasticity of unskilled labor demand also matters for the change of wage inequality.

Keywords: rural property rights; urban unemployment; skilled-unskilled wage inequality; social welfare; general equilibrium model

JEL Classification: E24; J31; P26

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About the article

Published Online: 2016-11-29



Citation Information: The B.E. Journal of Economic Analysis & Policy, ISSN (Online) 1935-1682, ISSN (Print) 2194-6108, DOI: https://doi.org/10.1515/bejeap-2015-0225. Export Citation

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