Lewis Model of Unlimited Supply of Labour (Explained in Easiest Way)

Hello there, my friends! Today, we’re going to talk about something interesting – the Lewis Model. Don’t worry if you’re not an economics expert; we’ll explain it in simple terms so everyone can understand.

What is the Lewis Model?

So, what exactly is this Lewis Model, you ask? It’s sort of like a map that shows how a country’s economy grows and changes. Sir Arthur Lewis, a brilliant economist, developed this model.

Lewis Model Explained – Unlimited Supply of Labour

Lewis Model Explained

Assume you live in a village where the majority of the people work on farms. That is the agricultural aspect of the situation. The Lewis Model refers to this as the “traditional sector.” People in the traditional sector work in agriculture, growing crops and other similar activities.

Consider a large city with factories, offices, and businesses. This is referred to as the “modern sector” in the Lewis Model. People here work in industries such as manufacturing cool gadgets or office work.

Advantages and Disadvantages of Lewis Model

The Lewis Model is an economic concept that provides insights into the transition of agriculture-dominated economies to industrialized ones. Understanding the benefits and drawbacks of the Lewis Model is crucial for understanding how it influences a country’s development. In this article, we discuss the Advantages and Disadvantages of Lewis Model, making it easier for you to understand its impact on economic growth and societal well-being.

Advantages of the Lewis Model

  1. Economic Growth: The Lewis Model can serve as a road map for countries seeking to strengthen their economies. It demonstrates the path from agriculture to industry, which results in more money for the country.
  2. Helps Developing Countries: This model functions as a road map for developing countries. It demonstrates how they can grow and become more prosperous. Imagine moving from a village to a big city; the Lewis Model can assist countries in doing so.
  3. Labor Migration: One interesting aspect of this model is that it discusses people moving from the countryside to the city in search of better jobs. It’s like going on a treasure hunt, except the prize is a better life.
  4. Increased Income: According to Lewis, as more people work in industries, a country’s income can rise. So, more money for all is a good thing.

Disadvantages of the Lewis Model

  1. Unequal Growth: The Lewis Model can sometimes result in uneven growth. That means that some people will get richer while others will not. It’s similar to when you and a friend share candy, but your friend gets more.
  2. Rural Areas Neglected: With all of the attention on cities and industries, the countryside can be overlooked. This can cause issues in rural areas, such as a lack of schools and hospitals.
  3. Environmental Issues: Environmental Concerns: As industries expand, they have the potential to harm the environment. More factories mean more pollution, and that’s not good for Earth.
  4. Dependence on Foreign Markets: Countries that follow the Lewis Model may become overly reliant on selling goods to other countries. If those countries refuse to purchase, it may cause problems.


The Lewis Model is a game plan for countries seeking to grow and become wealthy. It’s all about shifting from agriculture to industries, creating more jobs, and increasing income. But, like any game, it has its challenges, such as inequity and environmental issues.

The key is to apply the Lewis Model wisely, balancing growth with the well-being of all citizens while also caring for our planet. It’s like leveling up in a video game: you want to win, but you also want everyone to have fun.

We hope this blog post has clarified the Lewis Model for you. Please let us know if you have any further questions or would like to learn more about any other topics. We’re here to make complicated things simple for you!

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