Informal Tradables and the Employment Growth of Indian Manufacturing

India's manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper...

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Main Authors: Ghani, Ejaz, Kerr, William R., Segura, Alex
Format: Working Paper
Language:en_US
Published: World Bank Group, Washington, DC 2015
Subjects:
Online Access:http://hdl.handle.net/10986/21645
id okr-10986-21645
recordtype oai_dc
spelling okr-10986-216452021-04-23T14:04:03Z Informal Tradables and the Employment Growth of Indian Manufacturing Ghani, Ejaz Kerr, William R. Segura, Alex economic growth employment trade manufacturing trade liberalization global integration trade reforms tradable sectors urbanization microenterprises informal sector female business ownership labor regulations subcontracting productivity growth India's manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper investigates the causes and determinants of these growth patterns. The rapid urbanization of the informal sector plays the strongest role, while there is some evidence for subcontracting by the formal sector and a "push" entrepreneurship story. The paper also finds modest connections of this growth to rising female labor force participation. The connection between the presence of informal manufacturing and local productivity levels is strong, and varies across urban and rural areas in ways that bolster urbanization and subcontracting hypotheses. 2015-03-30T20:23:21Z 2015-03-30T20:23:21Z 2015-03 Working Paper http://hdl.handle.net/10986/21645 en_US Policy Research Working Paper;No. 7206 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic economic growth
employment
trade
manufacturing
trade liberalization
global integration
trade reforms
tradable sectors
urbanization
microenterprises
informal sector
female business ownership
labor regulations
subcontracting
productivity growth
spellingShingle economic growth
employment
trade
manufacturing
trade liberalization
global integration
trade reforms
tradable sectors
urbanization
microenterprises
informal sector
female business ownership
labor regulations
subcontracting
productivity growth
Ghani, Ejaz
Kerr, William R.
Segura, Alex
Informal Tradables and the Employment Growth of Indian Manufacturing
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 7206
description India's manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper investigates the causes and determinants of these growth patterns. The rapid urbanization of the informal sector plays the strongest role, while there is some evidence for subcontracting by the formal sector and a "push" entrepreneurship story. The paper also finds modest connections of this growth to rising female labor force participation. The connection between the presence of informal manufacturing and local productivity levels is strong, and varies across urban and rural areas in ways that bolster urbanization and subcontracting hypotheses.
format Working Paper
author Ghani, Ejaz
Kerr, William R.
Segura, Alex
author_facet Ghani, Ejaz
Kerr, William R.
Segura, Alex
author_sort Ghani, Ejaz
title Informal Tradables and the Employment Growth of Indian Manufacturing
title_short Informal Tradables and the Employment Growth of Indian Manufacturing
title_full Informal Tradables and the Employment Growth of Indian Manufacturing
title_fullStr Informal Tradables and the Employment Growth of Indian Manufacturing
title_full_unstemmed Informal Tradables and the Employment Growth of Indian Manufacturing
title_sort informal tradables and the employment growth of indian manufacturing
publisher World Bank Group, Washington, DC
publishDate 2015
url http://hdl.handle.net/10986/21645
_version_ 1764448863723192320