27

In this paper we analyze rural-to-urban migration in Less Developed Countries (LDCs). Our main assumption is that such migration can arise from the lack of available modern urban consumer goods in rural areas. Taking this hypothesis as our starting point, we use a dual economy model where the individuals’ target is utility maximization and we show that although the Todaro paradox might hold, Harris and Todaro’s prescription to stop migration is not necessarily adequate. Our analysis thus reveals that an appropriate urban consumer goods supply policy in rural areas could stop migration and solve related urban unemployment problems.JEL classification: R23, D11, C62.