Outsourcing, Informality, and Informal Wages

Sugata Marjit and Saibal Kar

in The Outsiders

Published in print March 2011 | ISBN: 9780198071495
Published online September 2012 | e-ISBN: 9780199081257 | DOI:
Outsourcing, Informality, and Informal Wages

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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

Chapter.  2924 words.  Illustrated.

Subjects: Economic Development and Growth

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