Urban Sprawl And Rural Development: Theory And Evidence From India
Author(s) Viktoria Hnatkovska and Amartya Lahiri


We examine the evolution of the fortunes of rural and urban workers in India between 1983 and 2010, a period of rapid growth in India. We find evidence of a significant convergence of education attainments, occupation distribution, and wages of rural workers towards those of urban workers. However, individual worker characteristics account for at most 40 percent of the wage convergence. We develop a two-sector model of structural transformation to rationalize the rest of the rural-urban wage convergence in India as the consequence of urbanization through land reclassification induced by productivity growth.

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