ABSTRACT
Introduction Ever since Lewis published his work on economic development in the condition of an unlimited supply of labor (Lewis 1954), much attention has been paid to research on labor migration in a dual economy. An overview can be found in some references (Ranis and Fei 1961; Jorgenson 1967; Dixit 1970; Mas-Colell and Razin 1973; Bencivenga and Smith 1997; Temple 2005), which show a history of controversy between neoclassical economics and development economics. Nevertheless, both sides recognize that the difference in wage rates plays a key role in the migration of a workforce between economic sectors. And most of the works concerned with labor migration between sectors treat the equivalent real wage rate as the equilibrium condition of labor transfer, that is, labor migration will cease when the wage rates of different sectors become equal.
