PIP: This article examines Botswana's wage labor migration in terms of 2 reigning theories: 1) as a dichotomy between traditional and modern society, with workers viewing agriculture as an alternative to more desirable wage employment; or 2) as a subordination of colonial society to capitalist society, with workers drawn from the resulting underdeveloped and impoverished areas and divorced from their agricultural potential. Approximately 90% of Botswanan households have a wage worker; less than 1/4 of households rely on the agricultural economy alone. 80% of the population works in agriculture in some way, but agriculture contributes only 35% of total rural income. Over 50% of households are below the poverty level, and most must rely on a variety of income sources for subsistence. 68% of rural households (Botswana is 84% rural) have absent wage earners while 45% have 1 or more wage earners present. Absent wage earners work mainly in unskilled and semi-skilled jobs in Botswanan towns (44%) and villages (22%), and lands and cattlepost locations (5%) in South African mines (19%), and other jobs in South Africa (8%). Individuals with low socioeconomic status tend to migrate to South Africa; those with higher status move to Botswanan towns. Working for wages has become customary for most Botswanans. This article undermines conventional development theories by showing the close interweaving of the modern and traditional societies, and arguing that traditional retention of communal land rights and cattle ownership served the capitalistic system by becoming the basis for wage earning; previous income source (agriculture) did not disappear, but their use was altered. South African mining returns to the Botswanan government since 1965 largely benefited a growing petty-bourgeois class and marginally improved the life styles of the peasant labor class. Botswana's development depends on the relationship between the peripherial laboring class and the dominating petty-bourgeois and its internal structure.