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The OutsidersEconomic Reform and Informal Labour in a Developing Economy$
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Sugata Marjit and Saibal Kar

Print publication date: 2011

Print ISBN-13: 9780198071495

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198071495.001.0001

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Informal Wages in the Presence of Agricultural and Manufacturing Sectors

Informal Wages in the Presence of Agricultural and Manufacturing Sectors

(p.35) 3 Informal Wages in the Presence of Agricultural and Manufacturing Sectors
The Outsiders

Sugata Marjit

Saibal Kar

Oxford University Press

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

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