Michael P. Shields

A Theoretical and Empirical Analysis of Family Migration and Household Production: Reply

of her household production as factors in the familys migration decisions [38]. In this paper, the research on family migration will be extended in three ways. A formal model of household production and family migration will be developed and used to generate testable hypotheses about family migration. Variables, which otherwise would not have a clear economic interpretation, are incorporated into the model. The model will then be estimated and some policy implications will be discussed. One policy implication concerns the efficiency of the labor market. Labor market efficiency needs to be judged not only in terms of the efficiency of the job search of single individuals but also in terms of the efficiency of the joint job search of double income families. This paper is organized into five sections. First, a comparative static household production model of locational choice is developed.2 Next, this model of locational choice is used to develop a theoretical model of family migration. Third, the data and empirical model are discussed. Fourth, the empirical results are reported and interpreted in terms of three different types of migration. Estimates of the impact of selected variables on the distance of the move are also considered. The final section summarizes the general findings and offers some policy implications.

Family Migration and Nonmarket Activities in Costa Rica

This study of family migration and nonmarket activities in a 10% sample of 4513 families drawn from the 1973 census of Costa Rica shows that differences in family characteristics can affect a familys mobility by changing a familys costs of producing household commodities or its ability to earn income at various locations. Many aspects of the familys nonmarket production are costly to transfer to a new location. The relative complexity of family versus individual migration involves more than the simple observation that family ties increase the costs of a move. Not only does location have an impact on market income but it also plays a role in household production. Many aspects of household production may be highly region-specific such as caring for children or aged adults providing for the childrens education and enjoying the company and support of friends and relatives. Higher husbands income may not be sufficient to compensate for the costs of transferring these activities to a new location. Differences in household technology represented by the education variables of the mothers play an important role in family migration as families resist moving from an area that has low input costs in the production of those commodities for which they have a comparative advantage. Families with a comparative advantage in producing educational commodities may be more likely to move to urban areas with better school systems and less likely to move in general. The number of children and the investment in their education are negatively associated with migration. The household production model allows the roles of women to be incorporated into migration analysis. The characteristics of women appear to be important in determining household migration. Even though less than 6% of the women in the sample earn wage income they should not be ignored in migration studies. The significant negative impact of the wifes education on migration attests to the dangers of ignoring the wifes role.

Lewis and Ricardo: A reinterpretation

Abstract The dualistic model of development developed by Lewis is compared to Ricardian growth theory. There are many similarities between the two models and the implications are identical. The main difference concerns the behavioral assumptions made with respect to the traditional sector. The Lewis model assumes nonmaximizing behavior while the Ricardian model assumes profit maximization. If one believes that individuals in the traditional sector are rational, then Ricardian growth theory is preferable.

The role of savings in economic development the U.S. and Japanese experiences

Abstract This paper explores the relationship between savings and growth in the United States and in Japan within a simple Granger causality framework. For Japan, growth caused savings before World War II while after World War II savings caused growth. For the US, growth caused savings after World War II. These results suggest that the savings-growth relationship may depend upon the stage of development.