5. Suppose a country has the Harris-Todaro problem. That is, for some reason urban wages are much...

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5. Suppose a country has the Harris-Todaro problem. That is, for some reason urban wages are much higher than rural, leading to inefficiently low manufacturing production, but at the same time there is high urban unemployment because rural workers migrate to the cities in search of high-wage jobs. What policy or combination of policies would you advocate to solve this problem?

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International Economics Theory And Policy

ISBN: 9780321116399

6th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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