The Lewis dual economy model is widely recognised in development economics for its profound explanatory power and applications in economic development. However, there remain some confusions and ambiguities, especially with respect to the definition of surplus labour and the wage determination...

Although dual economy models are widely recognized for their explanatory power and applications in development economics, their lack of micro-economic foundations and the associated loss of clarity has led to mainstream economists underplaying their importance. By providing a micro-economic...

It has been widely recognized that China has had a large pool of surplus labour. However, despite its significant implications for wage levels and the Chinese economy, the current debates yield conflicting results as to whether the Lewis turning point has been reached. This paper clarifies a...