THe Blog

March 09, 2016

Is There More To India’s Urbanization Beyond Delhi And Mumbai?



In this Mint article, Tadit Kundu says "cities with high population density (like Mumbai) and relatively lower population density (like Patna) should eventually witness equalisation in wages.......however, district-wise data shows otherwise.....big cities, like Mumbai and Delhi, still offer higher incomes than other urban areas and that leaves incentive for further migration into such cities"


He says " now, it is possible that cities that offer higher earnings are also more expensive to live and have higher house rents that negate the benefit of higher earnings. If that is the case, then there should be some positive relationship between earnings in a city and house rents. However, plotting district-wise incomes against district-wise rents shows that there hardly exists any relationship between the two."


"available data gives us enough reasons to suspect that urbanization in India has been lop-sided and continues to encourage migration from rural areas to urban areas and from smaller urban areas to bigger urban areas."

TAGS: urban , jobs , Mumbai , Delhi
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