Skill Formation, Employment and Earnings in the Urban Informal Sector (Population AND ECONOMIC Activity) (Report‪)‬

INTRODUCTION The origins of the informal sector are traced to the twin problems of rapid urbanization, as a result of rural to urban migration, and low rates of employment expansion in the "modern" sector. The inability of the "modern" sector to provide jobs for the fast growing urban labour force, however, is not' reflected in widespread unemployment. Instead, the surplus labour is absorbed in other sections of the urban economy which has been termed in the development literature as the informal sector.