This study focuses on two key aspects of economic growth in developing countries, namely the process of labour outmigration from agriculture and the related changes in underemployment in agriculture. It uses the data available on 86 developing countries for the period 1969-85 to investigate two sets of issues: the pace and pattern of labour outmigration from agriculture and their relationship to the conditions of employment in the modern and 'traditional non-agricultural sectors and the trends in underemployment and poverty in agriculture and their relationship to agricultural growth and labour outmigration from agriculture An attempt is then made to draw out the implications of the empirical findings for development theory and policy. The study is the outcome of research carried out by the Rural Employment Policies Branch of the ILO.