Article;
Slums are Hubs Hof Hope Progress and Dignity
Comment;
Higher wages are
an important determinant of migration of labor from villages to urban areas.
This pattern has already been recognized and more supply of labor drives down
wages in urban areas. All wages in the long run converge in the same direction.
If wages are down in rural areas they will increase with the low supply of
labor. Excess supply will lower wages and low supply will increase wages. The
process of urbanization we are seeing today will be reversed in the long-run
because wages will be high in the rural areas in the long run and poor people
will then migrate from urban areas to the rural areas in search of better
wages. Afterall, someday rural areas will be urbanized. Atleast the demand is
so and everybody will demand the same things the urban people have. We often
underscore that real demand lies in the villages, especially in India where
two-third population lives. I would not say that village poor are better off in
urban areas. They may be getting higher wages but village people have land
(major asset) which urban people do not have, what ever little. The problem is
that they do not have cash/demand and can not sell their land because it is the
only asset to feed themselves, so goods and services do not reach there.
Goods/services reach where wages/incomes are high...
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