Skip to main content

Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

Type:
Document
Content Type:
Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector
Language:

English

Slug
english
Identifier
skpEng
Sources:

Other sources

Experts from many international, regional and national agencies generously share their views, experiences and findings on skills, helping policy-makers among other stakeholders to understand the linkages between education, training and the world of work, and how to integrate skills into national development planning to promote employment and economic growth.

Thumbnail
Identifier
skpOSource
Slug
other-sources
Topics:

Other topic

Thumbnail
Identifier
skpOIssue
Slug
other-topic
Knowledge Products:

Promotional material

Presentations, discussion papers, meeting reports, promotional materials, videos, fact sheets, brochures and newsletters on skills development for employment.

Thumbnail
Identifier
skpAIM
Slug
promotional-material
Publication Date:
18 Nov 2016
Open
wcmstest4_185093.pdf
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.

DOI 10.1186/s40175-016-0056-8
Subject Tags:

Enterprises

Slug
enterprises
Identifier
175

Informal economy

Slug
informal-economy
Identifier
187
Regions:
Countries and territories:
Disqus