@techreport{DeSantis1998impact,
abstract = {The impact on internal migration of the recent Customs Union (CU)  agreement between Turkey and the European Union (EU) has been  studied with an intra-industry trade Applied General Equilibrium  (AGE) model with intersectoral capital mobility, under two  alternative specifications for the labour market: the traditional Harris-  Todaro approach and the existence of a 'wage curve' in the urban  sector. The numerical results show that, under both specifications, the  CU leads to migration from rural to urban areas, despite agriculture  remaining protected; causes a reduction of the urban unemployment  rate and the urban-rural wage gap as suggested by theoretical studies;  whilst raises the capital rent, a counter intuitive result with respect to  the dual economy literature. Both scenarios suggest that internal  migration is economically desirable, as it would contribute to a large  rise in welfare. The study also shows that the proposal of uniformly  subsidising the entire labour market maximises welfare, but the  possibility that the high wage union sector can cream off more rents,  and the large amount of financial resources required, make this policy  unfeasible. It might be thought that the results of this kind of exercise  would be highly sensitive to the assumptions made about the labour  market. One of the contributions of this paper is to demonstrate that  that is not the case.},
address = {Kiel},
author = {Roberto A. De Santis},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D58; F14; F15; F17; R23; 330; Customs Union; Internal Migration; AGE analysis; Turkey; Binnenwanderung; Lohnstruktur; St\"{a}dtische Arbeitslosigkeit; Industrieg\"{u}terau\ss{}enhandel; Allgemeines Gleichgewicht; Sch\"{a}tzung; T\"{u}rkei; Theorie},
language = {eng},
number = {867},
publisher = {Kiel Institute for the World Economy (IfW)},
title = {The impact of a Customs Union with the EU on internal migration in Turkey under the two alternative Harris-Todaro and wage curve settings},
type = {Kiel Working Papers},
url = {http://hdl.handle.net/10419/46909},
year = {1998}
}
