@TechReport{iza:izadps:dp1861,
            	author={Zenou, Yves},
            	title={The Todaro Paradox Revisited},
            	year={2005},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1861},
            	url={https://www.iza.org/index.php/publications/dp1861},
	abstract={The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an efficiency wage model, we find that there is no Todaro paradox while this is not always true in a search-matching model since a decrease in the urban unemployment benefit can increase
both urban employment and unemployment.},
	keywords={efficiency wages;search-matching;rural-urban migration;policy},
            }