Informal Wages in the Presence of Agricultural and Manufacturing Sectors

Sugata Marjit and Saibal Kar

in The Outsiders

Published in print March 2011 | ISBN: 9780198071495
Published online September 2012 | e-ISBN: 9780199081257 | DOI:
Informal Wages in the Presence of Agricultural and Manufacturing Sectors

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This chapter examines the welfare implications of changing wage and employment situations in the informal sector by constructing a comprehensive model. The structure involves an agricultural sector and incorporates several allied issues central to the considerably neglected analytical relationship between agriculture and informal activities. It is well known that better prospects for agricultural exports and productivity should increase agricultural wages. However, such an outcome depends on capital movement between the formal and informal manufacturing sectors. The inter-relationship sought between the agricultural and manufacturing sectors offers added value to a general set of results that focus on effects of external shocks to movements in informal wages and employment.

Keywords: welfare; employment; wages; informal manufacturing sector; inter-sectoral mobility; agricultural sector; external shocks

Chapter.  2189 words. 

Subjects: Economic Development and Growth

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