According to the Todaro migration model, can rural-urban migration in developing countries be economically rational despite high urban unemployment? No, because potential migrants compare the urban-rural wage differential before deciding to migrate. Yes, because migrants compare the expected urban-rural wage differential when deciding to migrate. Yes, because urban areas always offer better income opportunities compared to rural areas, even in the informal sector. No, because potential migrants fail to take into account that finding an urban job is very difficult.

According to the Todaro migration model, can rural-urban migration in developing countries be economically rational despite high urban unemployment? No, because potential migrants compare the urban-rural wage differential before deciding to migrate. Yes, because migrants compare the expected urban-rural wage differential when deciding to migrate. Yes, because urban areas always offer better income opportunities compared to rural areas, even in the informal sector. No, because potential migrants fail to take into account that finding an urban job is very difficult.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter17: Income, Poverty, And Health Care

Section: Chapter Questions

Problem 1P

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