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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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Outsourcing, Informality, and Informal Wages

Outsourcing, Informality, and Informal Wages

(p.41) 4 Outsourcing, Informality, and Informal Wages
The Outsiders

Sugata Marjit

Saibal Kar

Oxford University Press

This chapter examines the connection between production and outsourcing from the formal sector and its implications for economic development within its large informal counterpart. It primarily discusses the nature of production organization between the formal and informal sectors operating through vertical linkages and subjected to external shocks. It contemplates that deregulation, economic reforms, and increasing global exposure should affect informal activities, wages, and employment in a developing country.

Keywords:   production organization, outsourcing, formal sector, economic development, firm-level decisions, informal sector, vertical linkage

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