Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152397
Authors: 
Moreno-Monroy, Ana I.
Pieters, Janneke
Erumban, Abdul A.
Year of Publication: 
2014
Citation: 
[Journal:] IZA Journal of Labor & Development [ISSN:] 2193-9020 [Volume:] 3 [Year:] 2014 [Pages:] 1-17
Abstract: 
Using nationally representative survey data of Indian manufacturing enterprises spanning the period 1995-2006, we analyze the link between formal sector subcontracting and informal sector employment. A novelty in our analysis is that this relationship is allowed to differ between modern and traditional segments of the informal sector. We show that formal sector subcontracting is positively related to employment growth only in the most modern segments of the informal sector. Increased subcontracting cannot explain the persistently high employment in traditional informal manufacturing activities in India. Instead, subcontracting can contribute to job creation in relatively modern segments of the informal sector.
Subjects: 
Informal sector
Subcontracting
Employment
Manufacturing
India
JEL: 
J21
O14
O17
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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