... capitalist sector. These labors could be reduced without decreasing output; although in the model, there are other factors for an affluent supply of labor (these are: huge population growth due to low mortality and high birth ... considered necessary to induce the transformation from the subsistence sector to make up for the higher cost of living in an urban area or the psychological cost of transfer. As the marginal product of labor is ... labor and most times unlimited; they are all available at a subsistence wage. Lewis claimed that workers mainly contribute to economic development a...

• Word Count: 4558
• Approx Pages: 18
• Has Bibliography
• Grade Level: Undergraduate