Abstract
In fast-growing large emerging markets like China and India, labor market inefficiency is palpable. Firms in high-growth sectors face labor shortages while a large proportion of the population continues to live in regions with low employment opportunities. This is a puzzle for neoclassical growth models which suggest that the relative homogeneity in technology, preferences, and institutions across provinces within a country should lead to within-country migration and towards allocative efficiency in the labor market.
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Choudhury, P., Khanna, T. (2012). Physical, Social, and Informational Barriers to Domestic Migration in India. In: Aoki, M., Kuran, T., Roland, G. (eds) Institutions and Comparative Economic Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137034014_10
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DOI: https://doi.org/10.1057/9781137034014_10
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