Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152429
Authors: 
Raj, Rajesh SN
Sen, Kunal
Year of Publication: 
2016
Citation: 
[Journal:] IZA Journal of Labor & Development [ISSN:] 2193-9020 [Volume:] 5 [Year:] 2016 [Issue:] 10 [Pages:] 1-20
Abstract: 
The predominant type of firms in developing countries is small family firms and the self-employed in the informal sector. Very few family firms make the transition to larger firms employing non-family labour. In this paper, we examine the reasons for the low presence of firms employing non-family labour in the informal sector, using a firm-level data set drawn from nationally representative repeated cross-sectional surveys of the Indian informal manufacturing sector. We find that the key constraint to firm transition is firm capabilities, followed by the level of urbanisation, access to electricity and roads, and human capital, with financial constraints playing a lesser role.
Subjects: 
Informal sector
Firm transition
Firm growth
India
JEL: 
O17
L25
D22
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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