Question

In the context of the Harris-Todaro model of rural-urban migration, which one of the following is TRUE ?

• A. Unemployment in the urban sector emerges because rural-urban migration occurs primarily due to the higher expected wage income in the urban sector
• B. Unemployment in the urban sector emerges because rural workers migrate to the cities and towns due to the expected shortage of unskilled labour in the urban sector
• C. Unemployment in the urban sector emerges because the rural wage rate is institutionally fixed by the local body at a higher level than the urban wage rate
• D. Unemployment in the rural sector emerges because urban workers migrate to the rural sector due to the higher expected wage income in the advanced economies

Answer 1

The Correct Option is A

The correct option is (A) : Unemployment in the urban sector emerges because rural-urban migration occurs primarily due to the higher expected wage income in the urban sector.