Suppose there are 5 workers in an economy and initially all the workers work in the traditional sector at a wage equal to 1 (call this initial period, period 0). In each subsequent period, one worker migrates from the traditional sector to the modern sector where wages are equal to 4. Assuming that the number of workers remains constant, then in period 5 all the workers are in the modern sector. As migration takes place, the Gini coefficient of inequality
Tap an option to check your answer.
