Chapter

Empirical Evidence for India

Sugata Marjit and Saibal Kar

in The Outsiders

Published in print March 2011 | ISBN: 9780198071495
Published online September 2012 | e-ISBN: 9780199081257 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198071495.003.0008
Empirical Evidence for India

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This chapter provides an explanation on how informal real wages increased across most states in India over a period of two decades. It suggests that capital mobility between the formal and informal sectors may be one of the reasons for the increase. However, the empirical evidence is not an exact test of the theory developed in earlier chapters. The empirical structure is dependent on the availability and reliability of data on informal sector. A proxy variable capturing inter-sectoral capital mobility serves to drive some empirical findings in concurrence with theoretical predictions.

Keywords: India; informal sector; informal real wages; wage increase; capital mobility; production organization

Chapter.  8100 words.  Illustrated.

Subjects: Economic Development and Growth

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