By Alan A. Brown, Egon Neuberger
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2 1 8 2 1 9 ) , that i s , Nu = 0 as wu i wr. (4) It then follows, from an assumption of diminishing marginal productivity of labor, that migration leads t o a n equilibrium in which labor is used efficiently a n d serves t o p r o m o t e an equal distribution of w a g e s b e t w e e n 3 u r b a n a n d rural locations. This situation is depicted in Figure 3 . 1 , with a stable equilibrium division of labor at point a. Wherein then lies t h e migration p r o b l e m ? 2. R U R A L SECTOR PATHOLOGIES One of t h e fundamental assumptions of t h e foregoing is that rural w o r k e r s a r e paid t h e value of their marginal p r o d u c t .
24) reaches a weaker result on social welfare in the communal economy. In either case, zero marginal productivity of laborers does not imply zero social welfare cost for withdrawn laborers. 3 INTERNAL MIGRATION AND ECONOMIC DEVELOPMENT 45 season, then a marginal h o u r worked by a given w o r k force may contribute to the off-season, w h e r e a s an extra m a n can contribute also to the high-productivity season. In other w o r d s , the appropriate p r o d u c tion function is typically (7).