Wage Differential between Informal and Formal Wage Worker in India
Wage Differential between Informal and Formal Wage Worker in India

Summary/Abstract: This paper investigates broad empirical picture of wage differential between informal and formal wage worker across different sector, gender, industry, education, social group and state as well as informal and formal sector in India with the 55th (1999-2000) and 66th round (2009-2010) household survey on employment and unemployment conducted by National Sample Survey Office (NSSO). This study shows informal worker earns approximately two times less then formal worker in both informal as well as formal sector. Wage difference is sharp in case of skilled labour as compared to unskilled and semi-skilled labour. Compound annual growth of wage is very sluggish in all categories of labour. Formal worker earn two to three times more than informal labour in informal as well as in formal sector.

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