ABSTRACT
The chapter on dualism in the labour market is premised on three foundations: first, importation of foreign labourers from the neighbouring territories, as well as eventual creation of an internal labour supply from the steadily impoverished African reserves. Second, contrary to the assumption that the economy had moved from a situation of labour surplus at the beginning of colonisation towards an eventual elimination of this surplus, empirical evidence suggests that the labour supply actually moved from conditions of labour shortage towards one of a labour surplus. Third, the creation of an ‘unlimited’ supply of labour is presented through a formal model, with the help of rigorous analysis of the theory, Figures 5.1 and 5.2. are used for illustrative purposes. The model focuses mainly on the conditions that shift the labour supply curve of the predominantly unskilled labour to the right as the model concentrates for the most part on the behaviour of unskilled labour.
