Determinants of Informality and Monetary Outcomes of Informal Labour Market in Haryana

Abstract

Informality is a widespread phenomenon as the informal sector constitutes half of the economic activities in developing & transition economies as well. Hereby, the paper intends to explore the role of personal and work place-related characteristics persuading a worker to work with informal work conditions. Some relevant personal & work-place related characteristics have been explored wherein the extent of informality is more than otherwise. Informality index based on six parameters is developed to measure the extent of informality and the position of workers on informality scale indicates that majority of informal workers have to face some degree of informality at their work-place in Haryana. Significant inter-personal characteristics of workers have been traced out to make their candidature strong to increase their bargain power for formal/less informal working conditions and also for better monetary outcomes. The study also suggests some corrective measures which not only work in the line to improve working conditions of workers but also helps in raising tax revenue of government to finance minimum social security to workers of informal sector.