Editing Harris–Todaro model (section)

==Overview==
In the model, an [[Economic equilibrium|equilibrium]] is reached when the expected wage in urban areas (actual wage adjusted for the [[unemployment]] rate), is equal to the [[marginal product]] of an agricultural worker. The model assumes that unemployment is non-existent in the rural agricultural sector. It is also assumed that rural agricultural production and the subsequent labor market is [[perfect competition|perfectly competitive]]. As a result, the agricultural rural wage is equal to agricultural marginal productivity. In equilibrium, the rural to urban migration rate will be zero since the expected rural income equals the expected urban income. However, in this equilibrium there will be positive unemployment in the urban sector. The model explains internal [[migration in China]] as the regional income gap has been proved to be a primary drive of rural-urban migration, while urban unemployment is local governments' main concern in many cities.<ref name=paper5>{{cite journal|last=Zhao|first=Zhong|title=Rural-Urban Migration in China – What Do We Know and What Do We Need to Know?|journal=China Center for Economic Research Peking University|date=2003|s2cid=44741357|url=https://pdfs.semanticscholar.org/e455/dfb811d8c35b4a776ffae3b351a8423ccb72.pdf|archive-url=https://web.archive.org/web/20180828001742/https://pdfs.semanticscholar.org/e455/dfb811d8c35b4a776ffae3b351a8423ccb72.pdf|url-status=dead|archive-date=2018-08-28}}</ref>