SEMINAR SERIES
Macroeconomics Seminar (Joint with Macroeconomics seminar, KIER)
Viktoria Hnatkovska（Vancouver School Economics, University of British Columbia）
- Date&Time:
- 2025.5.29 (Thu) 16:00-17:30
- Venue:
- Refresh Room on 8F, Faculty of Law and Faculty of Economics, East Bldg., Yoshida Campus, Kyoto University
- Language:
- English
- Contact:
- Kazuhiro Yuki
"Urbanization, Structural Transformation and Rural-Urban Disparities in China and India" Viktoria Hnatkovska
Abstract:
Over the past three decades China and India have experienced rapid growth and structural transformation. Underneath this similarity however is one significant difference: rural-urban wage gaps during this period declined in India, but widened in China. We formalize a two-sector-two-location model in which structural transformation and urbanization respond endogenously to productivity shocks. While the structural transformation effect widens the rural-urban wage gap, the urbanization effect reduces it. We attribute the contrasting wage gap dynamics in the two countries to the higher costs of urban relocation for workers in China.