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2. The minimum wage in the Portland, OR metro area is S HE'S-hr. and the unemployment rate is 4.2%. Assume that a lowskilled worker from
2. The minimum wage in the Portland, OR metro area is S HE'S-hr. and the unemployment rate is 4.2%. Assume that a lowskilled worker from a rural Oregon county that moves to Portland will earn this wage. a. According to the HarrisTodaro model (Ch. 6 in your textbook}= what should he the wage in rural Oregon? 3 pts b. According to the HarrisTodaro model, what will happen to the rural wage if the urban wage and the number of employed people [E in the formula) remain the same, but the labor force (L in the formula the number of people in the labor market) increases. Explain why this makes sense. 2 pts
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