EMPIRICAL RELATIONSHIP BETWEEN TECHNOLOGICAL CHANGE AND WAGES Analysis of empirical trends from the 1980s

gives us facts: Wage dispersion increased rapidly. The average returns to education and

experience increased. The relative supply of college educated

workers increased.

IMPACT OF TECHNOLOGICAL CHANGE AND DESKILING IN PAKISTAN :

Technology now is used in the majority of workplace and workers in factories, schools and offices depend on modern technology.

Workers who do not have high skills will find it difficult to get a job and they will need to learn new skill, especially in computer programming and other advanced technologies.

Herman (2004) states that many manual skills are not needed because of the new machines which depend on technology.

TECHNOLOGICAL CHANGE IN AGRICULTURE & MANUFACTURING SECTOR OF PAKISTAN:

Agriculture is the largest income and employment-generating sector of Pakistan’s economy.

A number of researchers including Naqvi et. al. (1992, 1994) and Mellor (1988) believe that

Agriculture must maintain a growth rate of more than five percent in order to ensure a rapid growth of national income

Attaining macroeconomic stability, effective employment of growing labor force, securing improvement in distributive justice and a reduction in rural poverty in Pakistan.

CONTINUED..... Technical change has been considered as one of the

most important determinants of economic growth. Accroding to a study, by Karamat Ali and Abdul

Hamid: They found that technical change was taking place

at a continuous and variable rate. The major contributor to growth of output and

value-added in both the sectors was capital, which was contributing over fifty percent.

CONTINOUED.....

Labour share was about 20 percent in the agricultural sector and about 10 percent in the manufacturing sector.

Technical change was labour-saving and capital- using in the manufacturing.

CONTINOUED....... This is the reason behind the fact that The manufacturing sector of Pakistan has grown at

an annual rate of about 6.0 percent during 1970s At 8.7 percent during 1980s, and its share in GDP

has increased from 16.5 percent to about 19 percent,

It has failed to generate new opportunities for the labour force, so that the employment growth rate is only about 2 percent.

CONCLUSION...... Technologies have become very important in

physical products, like farm machinery or agrochemicals.

Speedy growth in such sectors has led to a rapid development of private firms that make, produce and sell technology and products based on agrochemicals.

POLICY IMPLICATIONS....... Attention should be given to technology and to

training and proper education of human resources. Technology should be developed according to the

needs of the economy. The public sector still has a role to play,

particularly in managing the new knowledge, supporting research to fill up the left over gaps, encouraging and regulating farmers associations, and ensuring their effects on the agriculture growth.