"Informal Employment, Poverty and Growth in India and China (August 2009 to September 2012)

The project "Informal Employment, Poverty and Growth in India and China" supported by IDRC (International Development Research Centre) between 2009 and 2012 was jointly implemented by the Institute of Rural Management Anand (IRMA) India, and the Institute of Population and Labour Economics, Chinese Academy of Social Sciences (CASS) China, in partnership with the Institute of Human Development (India).

The objectives of the project were to build knowledge of the relationship of informal employment to the processes of inclusive growth and poverty reduction in these countries, in the context of global economic and financial conditions. It also sought to examine the institutional basis of informality and the role of the state in regulating the economy and providing social protection for informal workers.

Project focused on understanding and analyzing the aspects of informal employment in India and China. The project achieved considerable success in generating some high quality research on issues related to informality in the labour market, mobility, migrants and informal employment, education and informality, and vulnerability and impact of poverty reduction program in India and China. The results of the project revealed stark differences between Indian and China, notably in the degree of participation in informal employment and their determinants. The project concluded that rapid industrialization and robust labour demand facilitated more positive labour outcomes in China than in India, and this was observed in more formalization (linked to policy reforms and strong incentive structures), better earnings, greater labour mobility, and less segmentation in the Chinese labour market compared to India. The project also opened up other sets of questions, particularly with respect to policy and regulatory impacts, the behavior of informal enterprises, and the dynamics of informal and formal employment at the firm level.

A deeper understanding of informal work and policy dialogue with the Indian and Chinese policy makers was developed through the Workshops held in both countries and the Final Conference held in India.

Research output:

Informal Employment in India China Special Issue Dec 2013

Completed Research Projects

Completed Research Projects