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Urban wages - PowerPoint PPT Presentation

The Harris-Todaro Model

The Harris-Todaro Model. If wages were perfectly flexible equal wages would be paid in industry and agriculture and there would be no unemployment. In a perfectly competitive market. D. A. Urban formal wage. ag wage. W*. C. B.

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The Todaro model Hypotheses : 1-Migration is an individual rational decision

The Harris -Todaro Model. If wages were perfectly flexible, equal wages would be paid in industry and agriculture and there would be no involuntary unemployment. The Todaro model Hypotheses : 1-Migration is an individual rational decision

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Urban wages - PowerPoint PPT Presentation

The Harris-Todaro Model

The Todaro model Hypotheses : 1-Migration is an individual rational decision