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Surplus Labour in the Unorganised Sector of India: The Case of Female Labour
Abstract
Disguised unemployment is the wastage of labour resource of a country. For a country like India that wishes to move towards a fast growth tract, disguised unemployment is a serious setback to the growth path. Several theoretical justifications have been provided to contextualize disguised unemployment. They all assume homogeneous production structure across firms. However, the informal sector in India is a conglomeration of different firm types. In India, the NSSO data subdivided firms into family enterprises (Own Account Enterprises – OAE) and commercially motivated (Establishment). The authors require a theoretical justification following this line. In this chapter, they generalise the argument provided by Georgescu-Roegen (1960) for this purpose. In this chapter, an attempt is made to measure surplus labour in the informal sector of India using NSSO data. For this, the concept of sub-vector efficiency as developed by Ray (2005) is used. The authors calculate surplus labour in OAEs and EST firms separately.
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