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The OutsidersEconomic Reform and Informal Labour in a Developing Economy$
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Sugata Marjit and Saibal Kar

Print publication date: 2011

Print ISBN-13: 9780198071495

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198071495.001.0001

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Reforms and Productivity in the Informal Sector

Reforms and Productivity in the Informal Sector

Chapter:
(p.154) 10 Reforms and Productivity in the Informal Sector
Source:
The Outsiders
Author(s):

Sugata Marjit

Saibal Kar

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198071495.003.0010

This chapter deals with specific micro-econometric characteristics reflecting on some aspects of formal–informal relations. Certain observations in the chapter were derived from primary surveys conducted in the states of West Bengal, Maharashtra, and Gujarat. The chapter tries to provide answers to some distinct questions: Whether productivity in the informal sector is lower than it is in the formal sector and what are the constraints in raising productivity in the former? What are the channels through which productivity changes take effect? Is productivity change in the informal sector capable of explaining the wage-employment movements significantly?

Keywords:   microeconomics, formal sector, informal sector, formal–informal relations, productivity gap, productivity changes, wages, employment, data envelopment method

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