Urbanization in a Developing Country: City Size and Population Composition
Author(s)
Henderson, Vernon J.
Abstract
In developing countries, generally there is a very high correlation between city size and educational attainment of the local population, which is less pronounced or even absent in such developed countries as Canada or the US. Using the large industrial region of Brazil in 1970 as a database, an econometric model of city sizes, labor force qualities, and production characteristics examines 2 explanations. First, the types of goods produced in larger cities require high skill labor inputs. Second, public and perhaps private services demanded by higher skill workers are offered only in larger cities. The findings on the production side indicate that skill requirements in production are an important and viable consideration, and skill requirements appear to rise as city size type rises. On the consumption side, it is found that high-skill people are attracted to large urban areas because of big city amenities. In terms of local public service, a good educational system seems to be particularly important for high-skill workers.
