An analysis of rural-urban migration and protection

In this paper a Harris-Todaro migration model is developed with the urban manufacturing sector supplying a crucial input for the rural sector. Capital is region specific but flows freely between two urban sectors. Final goods are traded and have exogenously fixed prices. If this economy imposes a tariff on the import-competing manufacturing sector, employment might go down even if the protected sector is labour intensive. The paper describes how intersectoral linkages can play a significant role in determining the employment effects of a tariff.