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Informality and Flexible Specialization: Labour Supply, Wages, and Knowledge Flows in an Indian Artisanal Cluster

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  • Amit Basole

Abstract

Artisanal industrial clusters, geographical agglomerations of small or micro, ‘flexibly-specialized’ enterprises, are an important component of the informal sector from employment generation, poverty alleviation, as well as export promotion perspectives. Two theoretical paradigms have commonly been employed to analyse such clusters: informality and flexible specialization. The first paradigm emphasizes precarious work, surplus labour, and low wages; the second, skilled labour, agglomeration economies, and fashion-sensitive products. This study brings these two perspectives together to address how informal institutions enable clusters to function and how they shape the distribution of risks and gains that accompany flexible specialization. Focusing on the artisanal weaving cluster in the city of Banaras, in North India, I examine the putting-out (subcontracting) system, the system of family-based apprenticeships, and the transfer of fabric designs between firms. In each case, I show how informality and flexible specialization complement and contradict each other.

Suggested Citation

  • Amit Basole, 2014. "Informality and Flexible Specialization: Labour Supply, Wages, and Knowledge Flows in an Indian Artisanal Cluster," Working Papers 2014_07, University of Massachusetts Boston, Economics Department.
    • Handle: RePEc:mab:wpaper:2014_07
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    References listed on IDEAS

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    Cited by:

    1. Amit Basole, 2014. "Authenticity, Innovation and the Geographical Indication in an Artisanal Industry: The Case of the Banarasi Sari," Working Papers 2014_09, University of Massachusetts Boston, Economics Department.

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