Productive Employment of surplus Labor in Disguised Unemployment

In the under developed countries , there is lot of surplus labor to be found in the form of disguised unemployment . In view of its importance as a potential source of capital  formation we discuss it more fully in the nest chapter. Here it may suffice to say that in the agricultural sector, in the under developed but over populated countries more people are apparently employed than  there is need for them . This surplus labor can be withdrawn from agricultural output and they can be employed elsewhere more productively in road making , irrigation works which are labor intensive. But the full effect of capital contribution from the transfer of surplus labor from agriculture would follow only if their consumption   level does not rise.