Question: Suppose that potential migrants make decisions only based on comparisons of their expected incomes. Suppose the rural wage is $1 per day. Urban formal sector

Suppose that potential migrants make decisions only based on comparisons of their expected incomes. Suppose the rural wage is $1 per day. Urban formal sector employment can be obtained with 0.25 probability and pays $3 per day. What would the urban informal sector daily income have to be to induce no net rural-urban migration? $0.67 per day $1.67 per day $1.33 per day $0.33 per day

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