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How Will You Know Whether a Worker is Working in the Informal Sector? - Economics

Answer in Brief

How will you know whether a worker is working in the informal sector?

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The following features help to recognise a worker working in the informal sector:

i. A worker working in an enterprise (other than the public sector establishments and the private sector establishments) hiring 10 or less than 10 workers.

ii. This sector includes millions of farmers, agricultural labourers, owners of small enterprises and self employed. These sections of people are not hired worker.

iii. A worker working in informal sector does not enjoy social security benefits such as provident fund, gratuity, pension, etc.

iv. The economic interest of the workers working in the informal sector is not protected by any Labour Laws other than Minimum Wages Act. Therefore, workers in the informal sector are highly exposed to the uncertainties of the market and have low bargaining power.

Concept: Employment: Growth, Informalisation and Other Issues
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NCERT Class 12 Economics - Indian Economic Development
Chapter 7 Employment: Growth, Informalisation and Other Issues
Exercise | Q 22 | Page 136
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