Informal Labour Markets and Development

BASUDEB GUHA-KHASNOBIS is a Research Fellow and Project Director at UNU-WIDER, Finland. Previous appointments include IGIDR (Mumbai), the EXIM Bank of India (Bangalore), ICRIER (New Delhi), and as a research consultant for several international organizations. He is the editor of The WTO, Developing Countries and the Doha Development Agenda. RAVI KANBUR is T.H. Lee Professor of World Affairs, International Professor of Applied Economics and Management, and Professor of Economics at Cornell University, USA, and previously Professor of Economics at the University of Warwick, UK, an

'Despite Arthur Lewis's predictions and arguments in the 1950s, it is clear that the informal sector is here to stay. Over the last half a century, the dynamics of rich and poor economies have further impressed the fact that 'informality' is not a passing phenomenon. In this context, this volume from UNU-WIDER is a great contribution to an appreciation of the opportunities and challenges in the informal sector. The countries selected show the rich experience in the informal sector of big and small economies from different regions of the world. A better understanding of the informality will enable policy makers and development practitioners to bring out the best from this sector, contributing to a world with more economic growth and less poverty. This book accomplishes this task very well.' - Sudharshan Canagarajah, Senior Economist, the World Bank 'The informal sector has been the major sector of growth and labour absorption in most of the developed world. The perspective on the sector has changed - and is still changing - since its 'discovery' in the early seventies in the development literature. The editors have to be congratulated on bringing together this valuable collection from work in different parts of the world. It will be used widely by researchers and practitioners alike.' - Dipak Mazumdar, Munk Center for International Studies, University of Toronto 'For many poor urban and peri-urban households, informal sector is often the only route to livelihood and survival. In the context of the Millennium Development Goal of reducing poverty, it is important to recognise that informal sector is not necessarily a 'rag-bag' of low-technology and low-productivity activities but one that can channel dynamism and the creativity of the poor; provided the right kind of institutional and policy environment is created. However, using a formal mechanism of policy to deal with issues of informal sector can be an oxymoron unless ingenious ways are used for deliberation and participation. The various chapters in this book make a timely contribution to deepen our understanding of some of the important challenges to enabling policies and facilitating institutions.' - P.B. Anand, Bradford Centre for International Development, University of Bradford, UK

• List of Figures List of Tables Foreword Acknowledgements Notes on Contributors List of Abbreviations and Acronyms Introduction: Informal Labour Markets and Development; B.Guha-Khasnobis & R.Kanbur PART 1: ECONOMIC REFORM AND INFORMAL LABOUR MARKETS Globalization, Reform and the Informal Sector; S.Marjit & D.S.Maiti Trade Reforms and Informalization: Getting Behind Jobless Growth in India; A.Sinha & C.Adam Evasive Reform: Informalization in a Liberalized Economy with Wage-setting Unions; I.Dasgupta & S.Marjit Township and Village Enterprises and Employment Generation in China; G.Wan & Y.Zhu The Informal Sector During Crisis and Transition; R.Dimova, I.N.Gang & J.S.Landon-Lane PART 2: SURVIVAL STRATEGIES OF THE URBAN POOR An Investigation of the Labour Market Earnings in Deprived Areas: Evaluating the Sources of Earning Differentials in the Slums; J.P.W.de Azevedo Urban Informal Sector and Networks: A Case Study of Delhi Slum Dwellers; A.Mitra Inter- and Intra-household Linkages between the Informal and Formal Sectors: A Case Study for Urban Burkina Faso; M.Grimm & I.Günther Skill Requirements, Earnings and Labour Demand in Nigeria's Urban Informal Sector; S.O.Olofin & A.O.Folawewo Survival Strategy and the Importance of the Informal Sector for Urban Poor Families: A Case Study of Jakarta; T.Tambunan Public Policies to Promote Productive Occupation and Increase Formality Among the Moderate Poor: The Mexican Agenda; E.Sojo & R.Villarreal