Rather, even when the activities of the modern sector expand, their employment-generating potential is often limited because technological choices (and thereby capital-labour ratios) are driven by global competition and thus largely determined exogenously. One of the characteristics of this different type of structural change is the transfer of labour from low-productivity agriculture to low-productivity service activities in urban areas. This entails a proliferation of low-productivity employment in non-tradable activities as workers move out of subsistence activities in agriculture, even at relatively low levels of per capita income.