Can urban growth reduce rural underemployment?

In a recent IFPRI working paper, Van Cappellen and De Weerdt (2023), we show how urban growth reduces underemployment in the rural hinterlands of towns and cities. But leveraging these labor market linkages between urban and rural areas for inclusive growth and poverty reduction will depend on overc...

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Main Authors: De Weerdt, Joachim, Cappellen, Hanne van
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2023
Subjects:
Online Access:https://hdl.handle.net/10568/132041
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author De Weerdt, Joachim
Cappellen, Hanne van
author_browse Cappellen, Hanne van
De Weerdt, Joachim
author_facet De Weerdt, Joachim
Cappellen, Hanne van
author_sort De Weerdt, Joachim
collection Repository of Agricultural Research Outputs (CGSpace)
description In a recent IFPRI working paper, Van Cappellen and De Weerdt (2023), we show how urban growth reduces underemployment in the rural hinterlands of towns and cities. But leveraging these labor market linkages between urban and rural areas for inclusive growth and poverty reduction will depend on overcoming two barriers. The first is that the jobs created are primarily low-skill, low productivity, and often casual (ganyu). Raising the human capital and productivity of the continually growing pool of rural workers, while simultaneously raising rural incomes to increase demand for the kind of off-farm goods and services they can provide, will be critical. Secondly, the labor market linkages between urban and rural areas operate primarily through the longer-established urban areas. Growth in Malawi’s newer emerging urban centers, while substantial, has not spilled over to rural labor markets yet. This is a missed opportunity and highlights the need for a geographically expansive urban investment strategy that includes fostering growth, agglomeration economies, and strong urban-rural linkages in Malawi’s smaller urban areas. Anchoring the development of smaller urban agglomerations in modernizing value chains, particularly in the agri-food sector, is one practical pathway for leveraging urbanization for inclusive development.
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spelling CGSpace1320412025-11-06T06:18:13Z Can urban growth reduce rural underemployment? De Weerdt, Joachim Cappellen, Hanne van urbanization rural development labour poverty income rural population economic aspects value chains agrifood systems In a recent IFPRI working paper, Van Cappellen and De Weerdt (2023), we show how urban growth reduces underemployment in the rural hinterlands of towns and cities. But leveraging these labor market linkages between urban and rural areas for inclusive growth and poverty reduction will depend on overcoming two barriers. The first is that the jobs created are primarily low-skill, low productivity, and often casual (ganyu). Raising the human capital and productivity of the continually growing pool of rural workers, while simultaneously raising rural incomes to increase demand for the kind of off-farm goods and services they can provide, will be critical. Secondly, the labor market linkages between urban and rural areas operate primarily through the longer-established urban areas. Growth in Malawi’s newer emerging urban centers, while substantial, has not spilled over to rural labor markets yet. This is a missed opportunity and highlights the need for a geographically expansive urban investment strategy that includes fostering growth, agglomeration economies, and strong urban-rural linkages in Malawi’s smaller urban areas. Anchoring the development of smaller urban agglomerations in modernizing value chains, particularly in the agri-food sector, is one practical pathway for leveraging urbanization for inclusive development. 2023-09-22 2023-09-27T21:24:48Z 2023-09-27T21:24:48Z Brief https://hdl.handle.net/10568/132041 en Open Access application/pdf International Food Policy Research Institute De Weerdt, Joachim; and Van Cappellen, Hanne. 2023. Can urban growth reduce rural underemployment? MaSSP Policy Note 50. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136899.
spellingShingle urbanization
rural development
labour
poverty
income
rural population
economic aspects
value chains
agrifood systems
De Weerdt, Joachim
Cappellen, Hanne van
Can urban growth reduce rural underemployment?
title Can urban growth reduce rural underemployment?
title_full Can urban growth reduce rural underemployment?
title_fullStr Can urban growth reduce rural underemployment?
title_full_unstemmed Can urban growth reduce rural underemployment?
title_short Can urban growth reduce rural underemployment?
title_sort can urban growth reduce rural underemployment
topic urbanization
rural development
labour
poverty
income
rural population
economic aspects
value chains
agrifood systems
url https://hdl.handle.net/10568/132041
work_keys_str_mv AT deweerdtjoachim canurbangrowthreduceruralunderemployment
AT cappellenhannevan canurbangrowthreduceruralunderemployment