Labor market reform and poverty – the role of informal sector

Sugata Marjit, Saibal Kar () and Dibyendu Maiti ()

MPRA Paper from University Library of Munich, Germany

Abstract: Recent papers, discussing the impact of economic reform in India, argue that the positive effect of reform is more significant in states, which are not ‘labor friendly’. Also labor market reforms seem to be a pre-condition for success of liberal policies as far as their impact on poverty is concerned. We argue that the exact mechanism behind such a link is yet to be clarified. We try to provide such a mechanism in terms of a general equilibrium model involving formal and informal workers. Our framework is capable of providing such a link and shows that there are occasions when such link is violated.

Keywords: Informal labor; capital mobility; labor market reform (search for similar items in EconPapers)
JEL-codes: F13 F16 J31 O17 (search for similar items in EconPapers)
Date: 2008-04, Revised 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in NEW AND ENDURING THEMES IN DEVELOPMENT ECONOMICS: edited by Bhaskar Dutta, Tridip Ray & E Somanathan: NY: World Scientific, 2009 (2009): pp. 229-240

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Related works:
Chapter: LABOR MARKET REFORM AND POVERTY – THE ROLE OF INFORMAL SECTOR (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23999

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