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New urban jobs through public investment

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Microsoft Word - Tutorial questions 2016 S2.docx

In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector), the Kenyan government embarked on a "Keynesian" policy of creating new urban jobs through public investment. By many accounts, the size of the informal sector in Kenya went up instead of dropping in the months that followed. Give an economic explanation of this phenomenon, using the Harris-Todaro model.

Reference no: EM131270032

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