In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector),
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In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector), the Kenyan government embarked on a “Keynesian” policy of creating new urban jobs through public investment. By many accounts, the size of the informal sector in Kenya went up instead of dropping in the months that followed. Give an economic explanation of this phenomenon, using the Harris–Todaro model.
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The HarrisTodaro model is an economic model that explains the phenomenon of persistent urban unemplo...View the full answer
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