EXAMINING THE DETERMINANTS OF RURAL-URBAN MIGRATION IN BRAZIL

Abstract

Many studies of rural labor markets in less developed countries have indicated that a significant portion of rural employment occurs in nonfarm activities. Therefore, the present study incorporates the rural nonfarm economy in the traditional rural-urban migration framework as a determinant of rural labor relocation. The case of Brazil showed that rural migration respond positively to urban income and negatively to rural income, and that rural migrants maximize the returns to their stock of human capital by moving to areas of higher returns to their labor force. The rural nonfarm economy was found to contribute significantly to rural earning, and therefore to restrain rural migration, in lower income areas.