The informal sector in an adjusting economy: The case of Pakistan

Pakistan is right now among those developing countries, which face a high population and limited opportunities for employment. With the introduction of new technology in the agriculture sector, a boom in the industrialization sector and remittances from the Gulf in late 1970s, these have caused massive migration from rural agricultural sector to the urban industrial sector. However, due to the current mechanization, employment elasticities in agricultural sector as well as in the industrial sector are declining [Kamal. 1993].