Abstract

This article is contextualized within the recent development in the domestic work sector in Pakistan, under the umbrella of International Labor Organization (ILO)’s convention for the domestic workers “Decent Work for the Domestic Workers”. The article is about exploring which theoretical framework (neo-liberalism, structuralist, and post structuralist) explains the persistence of the informal economy in the developing country like Pakistan. Scholarship indicates that people involve informal domestic workers for several reasons in addition to the economic motives. With the help of face to face interviews, this study investigates the reasons for domestic workers to join this informal work area as a lifelong employment source. A major reason identified is a variety of tacit benefits in addition to the salary. These benefits include free accommodation; paternal treatment of employers towards the workers and their family members; food and other daily life accessories. Similarly employer enjoys certain benefits such as no fixed working hours, getting extra work done without extra payments, or even paying lesser than National Minimum Wages (NMW). 45 semi structured interviews have been conducted from the domestic workers. The article lends support to all the three schools of thoughts i.e. neo-liberalism, structuralist, and post structuralist and unveils that informal mutual beneficial exchange between these workers and theiremployers is the main reason for people involved in the informal economy.

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