IZA Journal of Labor & Development · 2014 · 44 citations · 21 references
Social SciencesEconomicsSociologyLabor EconomicsLabor Market AnalysisLabor RelationsEmploymentInformal EconomyInformal OrganizationLaborBusiness SegmentsInformal LabourInformal ManufacturingJob Creation EffectsLabor InformalityLabor Market Informality
Abstract Using nationally representative survey data of Indian manufacturing enterprises spanning the period 1995–2006, we analyze the link between formal sector subcontracting and informal sector employment. A novelty in our analysis is that this relationship is allowed to differ between modern and traditional segments of the informal sector. We show that formal sector subcontracting is positively related to employment growth only in the most modern segments of the informal sector. Increased subcontracting cannot explain the persistently high employment in traditional informal manufacturing activities in India. Instead, subcontracting can contribute to job creation in relatively modern segments of the informal sector. JEL codes: J21, O14, O17
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The Informal Economy--Studies in Advanced and Less Developed Countries
Rickie Sanders, Alexandre San Martim Portes, Manuel Castells et al. · Economic Geography · 1991 · 279 citations