Question
In the Lewis Dual Sector Model, the “Lewis Turning Point” refers to:
Before the turning point: Labour supply to industry is perfectly elastic at the institutional wage — no wage pressure. After the turning point: Surplus labour is exhausted; MPL in agriculture is now positive; further industrial expansion requires higher wages → industrial profits squeezed → growth transitions to neoclassical (labour-scarce) mode. Note : India context: China crossed the Lewis Turning Point around 2010–12 (rising manufacturing wages). India, with large agricultural surplus labour, has not yet reached this point.More Research Questions
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