Revisiting the Informal Sector (eBook, PDF)
A General Equilibrium Approach
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sector has drawn serious cognizance among economists in view of its role in developing economies. The earlier contention that the informal sector epitomises the 'residual' sector or a sector of last resort has been belied by a plethora of evidences indicating its dynamic character and its instrumental role in ameliorating unemployment and in propelling the dev- oping economies towards growth and prosperity. This conceptual metamorphosis regarding the informal sector has stimulated revived interest in the phenomenon amongdevelopmenteconomists.Thereexistmanybooksthatdealwiththesector analyticall...
sector has drawn serious cognizance among economists in view of its role in developing economies. The earlier contention that the informal sector epitomises the 'residual' sector or a sector of last resort has been belied by a plethora of evidences indicating its dynamic character and its instrumental role in ameliorating unemployment and in propelling the dev- oping economies towards growth and prosperity. This conceptual metamorphosis regarding the informal sector has stimulated revived interest in the phenomenon amongdevelopmenteconomists.Thereexistmanybooksthatdealwiththesector analyticallyorempirically. However, the theoretical analysis of the different aspects of the sector is equally important, especially for formulation of appropriate policy prescriptions. Comparativestaticresults,inmanycases,divergefromtheconventionalresults.We noticedthatalthoughvariousauthorshavepublishedtheoreticalpapersindifferent journals, there are very few books that try to understand the informal sector in a theoreticalframework.Thislacunainculcatedinusaninteresttowritethisbook.
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