Informal Labour Markets in Pakistan
Published By: State Bank of Pakistan on eSS | Published Date: April , 2016This paper describes the results of a survey of informal-sector firms in Pakistan. Firms belong to the
informal sector mainly because of scarce financial resources. There are significant differences in the
level of wages and the flexibility of wages with the informal sector having both lower wages and greater
flexibility than the formal sector. While minimum wages are less binding in the informal sector, a sort
of indexation of wages to inflation is more common. In spite of these differences the reasons for not
cutting wages in a recession are similar between the two sectors. [Working Paper series No. 75].
Author(s): M. Ali Choudhary, Saima Naeem, Gylfi Zoega | Posted on: Jun 16, 2016 | Views() | Download (432)