1. What are the characteristics of those who migrate to urban areas? What positive and negative effects does their leaving have on those who remain?
2. Suppose that, for example in India, a minimum wage is instituted in the modern sector above the market clearing wage, while the rural traditional wage is market determined at a lower level than in the modern sector.
(a) Describe the impact of this policy on the rural labor force, urban unemployment, and the rural wage.