The less developed countries (LDC) present two kinds of
challenge to economists. First, they invite us to develop hypotheses
about how economic growth begins and about structural changes during the
early decades of growth. Second, they provide a fresh terrain on which
specialists in particular subject-matter areas can test accepted notions
about economic behaviour. For investigations in labour economics, the
structure of earnings provides a convenient starting point. (It is best
to say "earnings" rather than "wages" because most workers in the LDC's
are self-emplqyed.) Analysis of earnings requires an examination of
manpower supplies and requirements. This leads into the economics of
agriculture, industry, government, and other labour demanding sectors on
one side, and into a study of education and other skill-producing
agencies, on the other. Thus by starting with the earnings structure,
one is led rather directly into the heart of the economy.