Lewis turning point

The Lewis turning point is a situation in economic development where surplus rural labor is fully absorbed into the manufacturing sector.

[1] Typically, reaching the Lewis turning point causes an increase in the wage bill and the functional distribution favoring labor.

[1] According to a study by Zhang and Yang, China reached the Lewis point in 2010; cheap labor in the country has rapidly decreased and real agricultural wages have substantially increased.

Such rapid rise in wages for unskilled work is a key indicator of reaching the Lewis point.

[4] A 2013 working paper by the International Monetary Fund predicts the Lewis point in China to "emerge between 2020 and 2025".