CONSIDERING THE INEFFICIENCIES IN LABOR MARKET FOR AN EXPLANATION OF MIGRATION FACT FROM RURAL TO URBAN AREAS IN TURKEY

Abstract

In this study, it is intended to explain determinant points between market price of labor and shadow price of labor and explain migration from rural to urban according to this wage difference. Unemployment or rigidity in urban labor market causes different wage level from equilibrium wage level. This high level wage increases alternative cost of rural against urban and encourages migration from rural to urban. The state of instigating the migration from rural to urban that causing by the increase on wages levels which is in proportion to secession of competition level has been calculated by considering the Turkey example for different sectors. Consequently, it has been determined that the wage level modified according to the distortion in competition is one of the factors effecting the migration to rural to urban.Shadow Price; Migration from Rural to Urban; Labor Market