Question

Question 1. Describe the essential assumptions and major features of the Todaro Model of Rural-Urban Migration. [describes at least three points] Question 2: One of the most significant implications of this model (the Todaro Model of Rural- Urban Migration) is the paradoxical conclusion that government policies d urban employment may in fact lead to more urban unemployment. Explain three reasons for such a paradoxical result Question 3: In what ways can urban development policies be retooled to resolve the paradoxical conclusion of the Todaro Model of Rural-Urban Migration? [discuss two ways.

Answer 1

1. Todaro Model is also named as Harris-Tadaro model. This model was framed by John R. Horris and Micheal Tadaro in 1970. The model emphasizes mainly the effect of Migration of the people from Rural areas to the Urban areas. It reflects the differences in the wage pattern existing in Rural as well as Urban Areas.

Assumption:- This model assumes the fact the Real wage of urban areas are more than the Real wage in Agricultural areas. It should be consider that marginal wage increases event though un-employment ratio increases with the population ratio of the people in the urban areas.

Features:-  The model basically adopted in terms of explaining the concept of acquiring equilibrium force in which opportunity cost of the urban sector is more than the marginal cost of the rural sector prominently.

2. Reasons:- a) The Equilibrium force which reflects the equalization of real wage of agriculture and its agricultural marginal producitivity leads to migration from rural to urban. b) In the perfect competition, there will be huge competition of qualified skilled Employees to be entered in to the market. And also so naturally unemployment rate as Quanity of Employees will not have direct proportion of rate of Employment Generation c) Though Government provides subsidies to the Firms in order to achieve its profits through output of Goods and Services, The Rate of Migration from Rural to Urban increases the ratio of Job seekers in the Urban City which delays the again re-structuring the policy of granting more subsidies in order to increase the employees rate by supporting many production units. The above all reasons are the resultant factor of Paradoxal Effects.

3. Government should restructure the policy to create more employment opportunities by activating the effects of two considerations. 1) Allocation of Resources:- Government should equally quantify the resources for both Agricultural and the Urban Sector. If many socio-infra structure are built in the Rural areas to increse the output in GDP through Rural areas, then the people will resist from Migration to Urban areas. Example Granting Subsidies to produce Organic Products in the State. Organic Produce are gaining momentum nowadays in the US States which prevents Cancer Disease in the Advance Stage. 2. Then Govt should concentrate on identifying the different level of sources in order to Allocate the Resources in to both Urban and the rural areas. Giving more induction training to the people who are interested in producing paricular products. And also Conducting many Seminars of Workshop of Industries in the Urban Areas. So there will be balance between the Agricultural and Urban Employment. None of the people wont sit idle to choose the own job.