Reforms and Productivity in the Informal Sector

Sugata Marjit and Saibal Kar

in The Outsiders

Published in print March 2011 | ISBN: 9780198071495
Published online September 2012 | e-ISBN: 9780199081257 | DOI:
Reforms and Productivity in the Informal Sector

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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

Chapter.  9274 words. 

Subjects: Economic Development and Growth

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