Indian Journal of Industrial Relations: Economics & Social Dev.

Martha Alter Chen , Joann Vanek ¹

Affiliations
1 WIEGO Network &Lecturer in Public Policy, Harvard Kennedy School, Cambridge, MA 02138, US

Abstract

This paper provides a summary overview of recent rethinking and latest data on informal employment, particularly in developing countries. The paper begins with the examination of the two official international statistical definitions of the 'informal sector' and 'informal employment'. It then addresses the 'formalization of the informal economy' debate and presents a comprehensive framework for responding to informal enterprises and informal jobs. The paper analyzes why existing labor market models and regulations need to be re-examined in the light of the reality and complexity of informal employment today. The authors conclude that employment should be the cornerstone of the development agenda and that economic diversity should be the cornerstone of the future economy.

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Martha Alter Chen ¹, Roopa Madhav ², Kamala Sankaran ³

Affiliations
1 Harvard Kennedy School, WIEGO Network, US
2 School of Habitat Studies, Tata Institute of Social Sciences
3 University of Delhi, IN

Abstract

Four out of five urban workers in modern India are engaged in the informal economy, and half of these are self-employed. This article examines what legal reforms are needed for home-based producers, street vendors and waste pickers who together represent one-fifth of the urban workforce. The article describes the conditions of employment and work processes of these groups, and introduces key organizations of these workers. It then examines the legal demands of these organizations, grouped under: municipal, sector-specific, employment or commercial, and macro-economic. Finally the article draws out lessons for legal reforms for the selfemployed including the need for legal identity and incorporation into economic planning.

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