Labor market reform and poverty – the role of informal sector
Recent papers, discussing the impact of economic reform in India, argue that the positive effect of reform is more significant in states, which are not ‘labor friendly’. Also labor market reforms seem to be a pre-condition for success of liberal policies as far as their impact on poverty is concerned. We argue that the exact mechanism behind such a link is yet to be clarified. We try to provide such a mechanism in terms of a general equilibrium model involving formal and informal workers. Our framework is capable of providing such a link and shows that there are occasions when such link is violated.
|Date of creation:||Apr 2008|
|Date of revision:||2009|
|Publication status:||Published in NEW AND ENDURING THEMES IN DEVELOPMENT ECONOMICS: edited by Bhaskar Dutta, Tridip Ray & E Somanathan: NY: World Scientific, 2009 (2009): pp. 229-240|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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"Can Labour Regulation Hinder Economic Performance? Evidence from India,"
STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers
33, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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- Besley, Timothy J. & Burgess, Robin, 2002. "Can Labour Regulation Hinder Economic Performance? Evidence from India," CEPR Discussion Papers 3260, C.E.P.R. Discussion Papers.
- Rana Hasan & Devashish Mitra & Beyza P. Ural, 2006.
"Trade Liberalization, Labor-Market Institutions, and Poverty Reduction: Evidence from Indian States,"
India Policy Forum,
Global Economy and Development Program, The Brookings Institution, vol. 3(1), pages 71-122.
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- Sugata Marjit & Saibal Kar & Hamid Beladi, 2007. "Trade Reform and Informal Wages," Review of Development Economics, Wiley Blackwell, vol. 11(2), pages 313-320, 05.
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- Esfahani, Hadi S & Salehi-Isfahani, Djavad, 1989. "Effort Observability and Worker Productivity: Towards an Explanation of Economic Dualism," Economic Journal, Royal Economic Society, vol. 99(397), pages 818-36, September.
- Kar, Saibal & Marjit, Sugata, 2009. "Urban informal sector and poverty," International Review of Economics & Finance, Elsevier, vol. 18(4), pages 631-642, October.
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