Rural-To-Urban Migration, Urban Workforce and Tertiary Sector Employment : Inter-Relationship

In this study, it is argued that the rural to urban migration rate is both influenced by and influences the workforce participation rate and the level of service employment in the cities. Workforce participation rate lowers the service sector employment but raises in migration. In turn, migration of rural labour increases the service sector employment as limited spread of the industrial sector and/or capital bias of the technology with less employmennt potential forces the unskilled labour to be residually absorbed in the low productivity tertiary sector. Again, service sector employment lowers the workforce participation rate but attracts the rural unemployment and the casual workers from the agricultural sector. Urbanward migration in turn increases the workforce participation rate effort to sustain their consumption. Thus, urban workforce expans with a growing concentration of low prouctivity service jobs.