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Delicensing, informal sector and pro-poor growth in India

Maiti, Dibyendu S. (2012) Delicensing, informal sector and pro-poor growth in India. In: Indian Economic Development - Comtemporary Issues. Regal Publications, New delhi, pp. 173-185. ISBN 978-8184841671

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While Aghion et al. (2006) observed the unequal effect of delicensing in the formal sector in presence of differential labour institutions, the present study attempts to investigate the impact on the expansion of informal sector and whether such effect leads to the pro-poor growth in Indian or not. Theoretically, we argue that the dismantling of the licensing raises income of the informal sector and reduces the formal-informal wage gap. Empirically, a high correlation between delicensing and income of informal sector and also between per capita informal income and poverty reduction of wage gap has been significant in the post reform period. So, the delicensing has been turned out to be a pro-poor policy measure in India.

Item Type: Book Chapter
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Unnamed user with email
Date Deposited: 02 Apr 2013 01:00
Last Modified: 08 Jun 2016 23:50

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