| Sumario: | This article reviews the article published by economist Michael P. Todaro about urban unemployment in less developed countries. Todaro assumed that rural workers take into account their probability of unemployment when moving to an urban center is an essential concept. Other experts found out that his paper contains a mathematical error which resulted in a substantial overestimation of urban unemployment. Those experts also present their mathematical model correcting the work of Todaro. They formulated that if given the data on the rate of urban unemployment growth, the rate of employment can also be predicted from the real income differential, and likewise, income differential can be predicted from employment rate.
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