Globalization, Reform and the Informal Sector

Sugata Marjit and Dibyendu Maiti ()

No RP2005-12, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: 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.

Keywords: Econometric models (Economic development); Globalization; Industrial organization (Economic theory); Informal sector; Labour market (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (16)

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