Answer the following questions regarding the rural-urban migration. (1) Explain how the labor allocation is determined in the Lewis model. Assume that food shortage can be ignored.

(2) When food shortage occurs in the above model, discuss what is the possible outcome in terms of labor allocation? Also, discuss what is the possible solution to avoid this problem.

(3) Explain how the labor allocation and equilibrium wage(s) are determined in the Harris-Todaro model using a diagram (graph).

(4) Explain how the result of (3) will change if the minimum wage of the formal sector is raised.

5Based on the Harris-Todaro model, discuss what policy intervention may be effective to reduce the labor share of the informal sector in the urban sector.

6Explain the possible obstacle for continuous migration from the rural to the urban sector in the Lewis-Ranis-Fei model.