Migration
Using the Harris-Todaro model, show how an increase in the productivity of agriculture will reduce migration. Be sure to explain what you are showing.
Migration Using the Harris-Todaro model, show how an increase in the productivity of agriculture will reduce...
4. (a) What are the main features of the Harris-Todaro model of rural-urban migration? (b) Suppose the rural wage is $1 per day. Urban modern sector employment can be obtained with 0.5 probability and pays $2 per day. Will there be any rural-urban migration? Explain your reasoning, stating explicitly any simplifying assumptions, and show all work. 5. Suppose that, for example in India, a minimum wage is instituted in the modern sector above the market clearing wage, while the...
Consider the Harris-Todaro Model with an agricultural sector and
a manufacturing sector.
A. assume that the demand for agricultural labor decreases and
the minimum wage (M)
in the manufacturing sector remains unchanged. Determine the new
equilibrium number of agricultural workers, label it
L2A. What would the new unemployment interval
be?
FIGURE 7.12 The Harris-Todaro Migration Model Agricultural wage rate Manufacturing wage rate --XN --- - T LA LA LM Lu Unemployment We were unable to transcribe this image
Assignment #4 40 70 1. The graph drawn above is related to the Harris-Todaro model of rural to urban migration. The curve RR' is the demand curve for rural labor and the curve UU' is the demand curve for urban labor. These demand curves show the marginal productivity of labor on the vertical axis. The economy has 100 million urban and rural workers, who are looking for jobs. Assume that the labor markets are perfectly competitive. () Then what would...
Question 1. Describe the essential assumptions and major features of the Todaro Model of Rural-Urban Migration. [describes at least three points] Question 2: One of the most significant implications of this model (the Todaro Model of Rural- Urban Migration) is the paradoxical conclusion that government policies d urban employment may in fact lead to more urban unemployment. Explain three reasons for such a paradoxical result Question 3: In what ways can urban development policies be retooled to resolve the paradoxical...
Using the AE model, show and explain how the Fed can reduce the level of unemployment.
If your organization were contemplating using a team-based approach to increase productivity and reduce cost, what training issues would the organization likely face? How could the organization address these issues?
Using the LP/MP/AE model, show and explain how the Fed can reduce the level of unemployment.
3. Explain using graphs of how a productivity increase effects the supply and demand for aggregate output, and the supply and demand for labor. [hint: To do this, label all axes and graphs correctly, and show how each the supply and the demand shifts in each of the goods and labor markets].
Suppose there is a permanent increase in total factor productivity. Show what will happen to wages and the equilibrium quantity of labor using a graph of the labor market. Explain. Why is your answer different from problem number (3)?
Explain and/or show graphically, how the large increase in government spending would impact equilibrium in the IS-LM model. (You would need to clearly show/explain the path not just the result in the IS-LM model.) If drawing the graph(s), be sure to label all graphs, axis and any shifts of any curves.