Real Wages in Pakistan: Structure and Trends, 1970-84

Abstract

The structure of wages in any economy has profound implications for labour utilization, income distribution and the incentive to invest in human capital. This paper aims at measuring and analysing the level and trend of nominal and real wages in different sectors of the economy of Pakistan for the 1970-84 period. The broad patterns of wage change are then looked at in terms of their implications for employment promo lion, human capital formation and other related policy issues. The analysis is based on the best available information but the usual caveats appropriate to empirical work in Pakistan apply.