INFORMALITY, VULNERABILITY AND DEVELOPMENT

Dibyendu Maiti () and Arup Mitra ()
Additional contact information
Arup Mitra: Institute of Economic Growth, Delhi University Enclave, Delhi 110007, India

Journal of Developmental Entrepreneurship (JDE), 2011, vol. 16, issue 02, 199-211

Abstract: This paper makes an attempt to estimate the index of informal sector employment that can be attributed to the supply-push phenomenon. Factors explaining the inter-state variations in this index include the industrial-informal sector wage gap, revenue expenditure and development expenditure incurred by the government. Increased development expenditure brings a decline in distress-led informalization because education, health and infrastructure facilities tend to enhance the employability of an individual. However, education as such does not reduce the residual absorption in the informal sector unless there is improvement in quality. The paper also notes an increase in inequality with an increase in distress-led informalization. Adoption of labor intensive technology in the organized or formal industrial sector is indeed crucial for pro-poor growth. The other policy implication is in terms of enhanced investment in the areas of human capital formation and overall development of the region.

Keywords: Informal sector; supply-push; development expenditure; stochastic frontier (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1084946711001793
Access to full text is restricted to subscribers

Related works:
Chapter: Informality, Vulnerability and Development (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jdexxx:v:16:y:2011:i:02:n:s1084946711001793

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1084946711001793

Access Statistics for this article

Journal of Developmental Entrepreneurship (JDE) is currently edited by Peter Koveos

More articles in Journal of Developmental Entrepreneurship (JDE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().