According to the Lewis model,workers are paid a wage that is ________ in the capitalist sector.

Question

Quizplus · Accepted Answer

According to the Lewis model, workers in the capitalist sector are paid a wage that is equal to the subsistence wage plus a premium to compensate for moving. This additional compensation is required because the rural workers who move to the cities often face higher living expenses and additional costs associated with relocation, so their wages must be higher to enable a decent standard of living. The market determines the subsistence wage, but the premium is based on additional factors like migration costs and living expenses.

According to the Lewis Model,workers Are Paid a Wage That