The Outsiders: Economic Reform and Informal Labour in a Developing Economy
Sugata Marjit and Saibal Kar
Abstract
The informal economy has emerged as one of the most dynamic, active, and hotly-debated domains in the entire developing world. Unfortunately, it remains one of the least treated subjects in mainstream economic theory and development economics. This book provides a detailed theoretical overview and analytical understanding of informal labour markets in the context of economic reforms. Grounded in the neo-classical general equilibrium framework, it analyses the impact of deregulatory policies on the welfare of informal workers in a segmented labour market. Using empirical data and case studies, ... More
The informal economy has emerged as one of the most dynamic, active, and hotly-debated domains in the entire developing world. Unfortunately, it remains one of the least treated subjects in mainstream economic theory and development economics. This book provides a detailed theoretical overview and analytical understanding of informal labour markets in the context of economic reforms. Grounded in the neo-classical general equilibrium framework, it analyses the impact of deregulatory policies on the welfare of informal workers in a segmented labour market. Using empirical data and case studies, the book discusses how informal wage responds to unemployment in the formal sector by exploring the interactions between the formal and the informal labour markets. The book also examines institutional factors—political, economic, and governance mechanisms—to explore the major causes that sustain or impede the dynamism of the informal labour markets.
Keywords:
informal economy,
segmented labour markets,
economic reforms,
deregulation,
general equilibrium models,
Heckscher-Ohlin Framework,
informal workers,
informal wages,
international trade,
productivity,
unemployment,
welfare
Bibliographic Information
| Print publication date: 2011 |
Print ISBN-13: 9780198071495 |
| Published to Oxford Scholarship Online: September 2012 |
DOI:10.1093/acprof:oso/9780198071495.001.0001 |
