Questions & AnswersMicroeconomics

2. The minimum wage in the Portland, OR metro area is $14.75/hr.,...

Question
Answered step-by-step
Asked by ElderClover4553 on coursehero.com

2. The minimum wage in the Portland, OR metro area is $14.75/hr.,...

2. The minimum wage in the Portland, OR metro area is $14.75/hr., and the unemployment 
rate is 4.2%. Assume that a low-skilled worker from a rural Oregon county that moves to 
Portland will earn this wage. 

a. According to the Harris-Todaro model (Ch. 6 in your textbook), what should be the wage 
in rural Oregon? 
 

b. According to the Harris-Todaro 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. 
 

Answer & Explanation

Solved by verified expert
Answered by Kathleenuy1 on coursehero.com

sectetur adipiscing elit. Nam lacinia pulvina

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec fa
CliffsNotes Logo

Unlock access to this and over
10,000 step-by-step explanations

Unlock Explanation

Have an account? Log In

<p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitu</p><p>sectetu</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie cons</p><p>sectetur</p><p>sectetur a</p><p>sectetur adipiscing elit. Nam</p><p>sectetur adipis</p>

Step-by-step explanation

sectetur adipiscing elit. Nam lacinia pulvinar tor

sectetur adipiscing elit. Nam lacin

sectetur adipiscing elit.

sectetur adipiscing elit. Nam laci

sectetur adipiscing elit. Nam lacin

sectetur

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lore

sectetur adipiscing elit. N

sectetur adipiscing elit.

sectetur adipiscing elit. Nam laci

sectetur adipiscing elit. Nam lacin

sectetur

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odi

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, cons

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. N

Get unstuck with a CliffsNotes subscription

Example CliffsNotes Question and Answer
Unlock every step-by-step explanation, download literature note PDFs, plus more.Get Access

Related Q&A