The role of the informal sector in structural transformation: Some Indian evidence
AbstractThe aim of this paper is to highlight the role of the informal sector in the Indian economy. The paper notes that in occupational distribution in India, particularly during the 1970s, it is the informal sector (I-sector) which accounted for most of the increase in non-agricultural employment and that this growth of I-sector employment occurred not only in activities traditionally thought to be associated with the I-sector expansion (such as trade, construction and services) but also importantly in manufacturing, and there is a strong presumption that the manufacturing segment of the informal sector expanded faster than its services segment. Evidence further suggests that the I-sector was not a passive absorber of labour but a dynamic sector responding successfully to changing demand in the economy and contributing significantly to income and output. The paper also offers a hypothesis that, simultaneously with these changes in economic structure, there is likely to have occurred a change in the composition of rural-urban migrants with the share of those who go to the informal sector and have only informal sector jobs as their targets (usually members of the poorer households in the rural areas) increasing and that of those who go to the formal sector (usually well-educated members of the relatively well-to-do land-owning families in the rural areas) declining; further, migration by the members of the poorer rural households is likely to have increased not because their rural income declined but because the informal sector income increased.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.
Volume (Year): 8 (1996)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www3.interscience.wiley.com/journal/5102/home
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- L. F. Giblin., 1940. "Economic Progress," The Economic Record, The Economic Society of Australia, vol. 16(2), pages 262-270, December.
- Jesim Pais, 2006. "Migration and Labour mobility in the Leather Accessories Manufacture in India," Working Papers id:451, eSocialSciences.
- Bhattacharya, Prabir C., 2011. "Informal sector, income inequality and economic development," Economic Modelling, Elsevier, vol. 28(3), pages 820-830, May.
- Prabir C. Bhattacharya, 1998. "Migration, employment and development: a three-sector analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(7), pages 899-921.
- Prabir C. Bhattacharya, 2002. "Rural-to-urban migration in LDCS: a test of two rival models," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 951-972.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.