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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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Empirical Evidence for India

Empirical Evidence for India

(p.105) 8 Empirical Evidence for India
The Outsiders

Sugata Marjit

Saibal Kar

Oxford University Press

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

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