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Informal Labour Markets in Pakistan

Listed author(s):
  • Muhammad Ali Choudhary

    ()

    (State Bank of Pakistan)

  • Saima Naeem

    ()

    (State Bank of Pakistan)

  • Gylfi Zoega

    ()

    (University of London,)

This 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.

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File URL: http://www.sbp.org.pk/repec/sbp/wpaper/wp75.pdf
File Function: First version, 2016
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Paper provided by State Bank of Pakistan, Research Department in its series SBP Working Paper Series with number 75.

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Length: 35 pages
Date of creation: Apr 2016
Handle: RePEc:sbp:wpaper:75
Contact details of provider: Postal:
CENTRAL DIRECTORATE, I.I. CHUNDRIGAR ROAD, KARACHI-74000

Web page: http://www.sbp.org.pk/repec/sbp/index.html
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