Chaudhuri / Mukhopadhyay Revisiting the Informal Sector

A General Equilibrium Approach
1. Auflage 2009
ISBN: 978-1-4419-1194-0
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 243 Seiten

This book provides insight into the diverse aspects of the informal sector, its role in the context of unemployment, child labor, globalization and environment, as well as its multi-faceted interaction with the other sectors of the economy.

Autoren/Hrsg.

Chaudhuri, Sarbajit

Mukhopadhyay, Ujjaini

Inhaltsverzeichnis

1;Revisiting the Informal Sector;1
2;Foreword;5
3;Preface;6
4;Contents;8
5;1 Introduction;11
5.1;1.1 Genesis of Informal Sector: A Historical Perspective;11
5.2;1.2 Towards Defining the Informal Sector;12
5.3;1.3 Theoretical Approaches to Informal Sector;14
5.4;1.4 Informal Sector Employment: Voluntary or Involuntary?;16
5.5;1.5 Growth of the Informal Sector;17
5.6;1.6 Globalisation and the Informal Sector;20
5.7;1.7 Child Labour and Informal Sector;22
5.8;1.8 Informal Sector: Effects on Environment;24
6;2 Theoretical Foundations: A General Equilibrium Approach;26
6.1;2.1 The 2 2 HeckscherOhlinSamuelson Model;26
6.1.1;Equations of Change ;28
6.1.1.1;The Stolper--Samuelson Theorem ;28
6.1.1.2;The Rybczynski Theorem ;29
6.1.2;Responses of Outputs to Changes in the Commodity Prices ;32
6.1.3;2.1.1 An Alternative Presentation;32
6.2;2.2 The 2 3 Full-Employment Model;34
6.2.1;2.2.1 The Alternative Version;37
6.3;2.3 Measurement of Social Welfare;38
7;3 The Harris--Todaro Migration Model and Introductionof the Informal Sector;42
7.1;3.1 Labour Market Segmentation;42
7.2;3.2 Determination of Unionised Wage Through Collective Bargaining;42
7.3;3.3 Two-Sector Mobile Capital Version of the HarrisTodaro Model;44
7.4;3.4 Three-Sector HT Model, Urban Employment and Trade Liberalisation;48
7.5;3.5 Introduction of the Informal Sector;51
7.6;3.6 Subcontracting;54
7.6.1;3.6.1 Two Alternative Contracts;55
7.7;3.7 Does the Informal Sector Live or Die with the Formal Sector?;59
7.8;Appendix 3.1: Derivation of the R Function;61
8;4 Informal Sector and Open Unemployment;63
8.1;4.1 Existing Literature and Empirical Evidences;63
8.2;4.2 Gupta Model;67
8.2.1;4.2.1 The Model;67
8.2.1.1;4.2.1.1 The Formal Sector;67
8.2.1.2;4.2.1.2 The Informal Sector;68
8.2.1.3;4.2.1.3 The Rural Sector;69
8.2.1.4;4.2.1.4 Marketable Surplus;69
8.2.1.5;4.2.1.5 Rural--Urban Migration;70
8.2.2;4.2.2 Effects of Policy Changes on Unemployment;71
8.2.2.1;4.2.2.1 The Effect of Wage Subsidy Policy to the Formal Sector;72
8.2.2.2;4.2.2.2 The Effect of Capital Subsidy Policy to the Informal Sector;72
8.2.2.3;4.2.2.3 The Effect of Price Subsidy Policy to the Informal Sector;72
8.2.2.4;4.2.2.4 The Effect of Wage Subsidy Policy to the Rural Sector;72
8.2.2.5;4.2.2.5 The Effect of Price Subsidy Policy to the Rural Sector;72
8.3;4.3 Chaudhuri (2000) Model;73
8.3.1;4.3.1 The Model;73
8.3.1.1;4.3.1.1 Urban Formal Sector;74
8.3.1.2;4.3.1.2 Informal Sector;75
8.3.1.3;4.3.1.3 Rural Sector;76
8.3.2;4.3.2 Equilibrium Conditions for Production of Food and Manufactures;77
8.3.3;4.3.3 Other Equations of the Model;77
8.3.4;4.3.4 General Equilibrium;78
8.3.4.1;4.3.4.1 Effects of Policy Changes on Unemployment;80
8.4;Appendix 4.1;82
8.5;Appendix 4.2;83
9;5 Foreign Capital Inflow, Informal Sector and Welfare;85
9.1;5.1 Introduction;85
9.2;5.2 Pessimistic View;86
9.2.1;5.2.1 Immiserising Growth: Brecher and Alejandro (1977) Proposition;86
9.2.2;5.2.2 Introduction of Rural--Urban Migration;88
9.2.3;5.2.3 Introduction of the Informal Sector: Chandra and Khan (1993) Model;90
9.3;5.3 Gainful Effects of Foreign Capital;92
9.3.1;5.3.1 Chaudhuri (2005) Model: Role of Labour Market Distortion;93
9.3.1.1;5.3.1.1 An Extension: Inclusion of Technology Transfer and Endogenous Determination of Foreign Capital Inflow;96
9.3.2;5.3.2 Gainful Effects of Foreign Capital in the Presence of an Urban Informal Sector and Open Unemployment of Labour;101
9.3.2.1;5.3.2.1 Effects of Foreign Capital Inflows on Welfare;104
9.3.2.2;5.3.2.2 Effects of Foreign Capital Inflow on Urban Unemployment;106
9.4;Appendix 5.1 ;107
9.5;Appendix 5.2;108
9.6;Appendix 5.3;108
9.7;Appendix 5.4;109
10;6 How and How Far to Liberalise a Developing Economy;110
10.1;6.1 Introduction;110
10.2;6.2 The Analysis and Results;112
10.3;6.3 Implications of the Derived Results;120
10.4;6.4 An Extension: A HarrisTodaro Framework with Imperfect Labour and Capital Markets;121
10.5;6.5 Policy Implications of Results of the Extended Model;125
10.6;Appendix 6.1: Derivation of Equation (6.12);126
11;7 Economic Liberalisation, Informal Wage and SkilledUnskilled Wage Inequality;129
11.1;7.1 Introduction;129
11.2;7.2 Economic Liberalisation, Capital Mobility and Informal Wage;131
11.3;7.3 Policy Implications of the Results;135
11.4;7.4 Economic Reforms and SkilledUnskilled Wage Inequality;136
11.5;7.5 Policy Implications of the Results;145
11.6;Appendix 7.1 ;146
11.7;Appendix 7.2: Derivation of stability condition in the market for the non-traded input;148
11.8;Appendix 7.3: Two possible cases;148
11.9;Appendix 7.4: Derivation of Equation (7.22);151
11.10;Appendix 7.5: Derivation of Equation (7.23);152
12;8 Incidence of Child Labour, Informal Sector and Economic Liberalisation;154
12.1;8.1 Introduction;154
12.2;8.2 Effects of Education Subsidy and Economic Liberalisation on the Incidence of Child Labour;157
12.2.1;8.2.1 Derivation of Supply Function of Child Labour;158
12.3;8.3 An Extension: Urban Unemployment of Adult Labour in a HarrisTodaro Framework;169
13;9 Informal Sector, Pollution and Waste Management;187
13.1;9.1 Introduction;187
13.1.1;9.1.1 Informal Sector and Pollution;187
13.1.2;9.1.2 Informal Sector and Solid Waste Management;188
13.2;9.2 Trade-Off Between Pollution and Welfare in the Presence of an Informal Sector;190
13.2.1;9.2.1 Policy Effects on Environmental Pollution;198
13.2.2;9.2.2 Policy Effects on Welfare;199
13.3;9.3 International Trade in Wastes and Recycling: Role of the Informal Sector;201
13.3.1;9.3.1 The Model;203
13.3.2;9.3.2 Effects of Tariff Reform on the Economy;207
13.3.3;9.3.3 Effects of Foreign Capital Inflow on the Economy;210
14;10 Conclusion and Comments;217
14.1;10.1 An Overview;218
14.2;10.2 Concluding Remarks;224
15;Selected Bibliography;228
16;Index;239