Arbeitspapier
Globalization, reform and the informal sector
The objective of the paper is to understand the transforming relationship between the formal and informal sector in a liberalizing open developing economy. There are various facets in this relationship, and we focus on three essential aspects. First, we look at the impact of deregulatory policies in the informal sector on informal wages, the earning index of the substantial majority of the workforce in a developing economy. Theoretical discussions are followed by empirical evidence on informal manufacturing in India. Implications of introducing labour laws are also discussed. Then, we highlight the vertical relationship between the formal and the informal sectors and the consequence of reformatory policies, in particular, the impact on the relative size of these segments within an erstwhile protected sector. Empirical evidence from Brazil and Colombia seems to match our theoretical conjectures. We conclude with a discussion of a fieldbased survey on the changing relationship between formal and informal entrepreneurs in a range of rural industries in India, as these industries gear up for expanded markets and export. This is done to provide further insight into the transformation process.
- ISBN
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9291906913
- Language
-
Englisch
- Bibliographic citation
-
Series: WIDER Research Paper ; No. 2005/12
- Classification
-
Wirtschaft
Informal Economy; Underground Economy
Trade and Labor Market Interactions
- Subject
-
informal sector
reformatory policies
production organization
Informeller Sektor
Wirtschaftsreform
Entwicklungsländer
- Event
-
Geistige Schöpfung
- (who)
-
Marjit, Sugata
Maiti, Dibyendu S.
- Event
-
Veröffentlichung
- (who)
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The United Nations University World Institute for Development Economics Research (UNU-WIDER)
- (where)
-
Helsinki
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Marjit, Sugata
- Maiti, Dibyendu S.
- The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Time of origin
- 2005
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