Publication:
The Exceptional Persistence of India's Unorganized Sector

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dc.contributor.authorKerr, William R.
dc.contributor.authorGhani, Ejaz
dc.contributor.authorO'Connell, Stephen D.
dc.date.accessioned2013-09-04T18:14:37Z
dc.date.available2013-09-04T18:14:37Z
dc.date.issued2013-05
dc.description.abstractThe transformation of India's unorganized sector is important to its modernization, growth, and attainment of regional economic equality. This paper documents several key facts about India's unorganized sector in manufacturing and services. First, the unorganized sector is large, accounting for more than 99 percent of establishments and 80 percent of employment in manufacturing. Second, the unorganized sector is stubbornly persistent -- it accounted for 81 percent of manufacturing employment in 1989 and 2005. Third, this persistence is not due to particular subsets of industries or states, as most industries and states show limited change in unorganized sector employment shares. Fourth, the degree to which localized unorganized activity exists is important as it is associated with weaker production functions for manufacturing firms. Building from these facts, the paper investigates conditions promoting transformation by state-industry. Decomposition exercises find that both within and between adjustments for state-industries weakly reduce unorganized sector shares. The aggregate persistence instead comes from the covariance term, where fast-growing state-industries witness rising unorganized sector activity. Regressions quantify that growth in the organized sector by state-industry reduces the unorganized sector employment share, but only marginally reduces employment levels in unorganized activity. Analysis of the establishment size distribution highlights that entrepreneurship and larger organized sector plants are most important for transitions in the manufacturing sector, while small establishments play a key role in the services sector.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/05/17738072/exceptional-persistence-indias-unorganized-sector
dc.identifier.doi10.1596/1813-9450-6454
dc.identifier.urihttps://hdl.handle.net/10986/15593
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6454
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAGGREGATE GROWTH
dc.subjectAGGREGATE PRODUCTIVITY
dc.subjectAGGREGATE PRODUCTIVITY GROWTH
dc.subjectAVERAGE WAGE
dc.subjectBUSINESS ACTIVITY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS LEADERS
dc.subjectBUSINESS REGISTRATION
dc.subjectBUSINESS SERVICES
dc.subjectCOMPETITIVENESS
dc.subjectCOMPUTER HARDWARE
dc.subjectCOMPUTERS
dc.subjectCONFIDENTIAL DATA
dc.subjectCONNECTIVITY
dc.subjectCONTRACT LABOR
dc.subjectDATA CENTER
dc.subjectDATA QUALITY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDRIVERS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectELECTRICITY
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT GROWTH
dc.subjectEMPLOYMENT GROWTH RATE
dc.subjectEMPLOYMENT LEVEL
dc.subjectEMPLOYMENT LEVELS
dc.subjectEMPLOYMENT SHARE
dc.subjectENTERPRISE SECTOR
dc.subjectENTREPRENEURIAL ACTIVITY
dc.subjectEQUIPMENT
dc.subjectEQUIPMENTS
dc.subjectFEMALE LABOR
dc.subjectFEMALE LABOR FORCE
dc.subjectFIRM SIZE
dc.subjectFUTURE RESEARCH
dc.subjectGLOBALIZATION
dc.subjectGROWTH PATH
dc.subjectHIGH EMPLOYMENT
dc.subjectHIGH ENTRY RATE
dc.subjectHIGH ENTRY RATES
dc.subjectHIGH LEVELS
dc.subjectHOUSEHOLD ENTERPRISE
dc.subjectHUMAN CAPITAL
dc.subjectINDUSTRIAL STRUCTURES
dc.subjectINFORMAL ECONOMY
dc.subjectINFORMAL SECTOR
dc.subjectINNOVATION
dc.subjectINNOVATION POLICY
dc.subjectINSPECTION
dc.subjectINSTITUTION
dc.subjectJOB CREATION
dc.subjectJOB DESTRUCTION
dc.subjectJOB SECURITY
dc.subjectJOBS
dc.subjectLABOR ECONOMICS
dc.subjectLABOR FORCE PARTICIPATION
dc.subjectLABOR INTENSITY
dc.subjectLABOR LAWS
dc.subjectLABOR REGULATION
dc.subjectLABOR REGULATIONS
dc.subjectLABOUR
dc.subjectLICENSE
dc.subjectLITERACY
dc.subjectLITERACY RATE
dc.subjectLITERACY RATES
dc.subjectLITERATURE
dc.subjectMANUFACTURING INDUSTRY
dc.subjectMATERIAL
dc.subjectMISSING VALUES
dc.subjectNETWORKS
dc.subjectOPEN ACCESS
dc.subjectPAPERS
dc.subjectPLANT PRODUCTIVITY
dc.subjectPOPULATION DENSITY
dc.subjectPREVIOUS SECTION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROPERTY RIGHTS
dc.subjectRADIO
dc.subjectRESEARCHERS
dc.subjectRESULTS
dc.subjectRURAL POVERTY
dc.subjectSCIENTISTS
dc.subjectSERVICE INDUSTRIES
dc.subjectSERVICE SECTOR
dc.subjectSMALL BUSINESSES
dc.subjectSMALL MANUFACTURING
dc.subjectTELEVISION
dc.subjectTIME PERIOD
dc.subjectTIME PERIODS
dc.subjectTOTAL EMPLOYMENT
dc.subjectTRADE LIBERALIZATION
dc.subjectUNEMPLOYMENT
dc.subjectUNPAID WORKERS
dc.subjectUSES
dc.subjectWEB
dc.subjectWORKER
dc.subjectWORKERS
dc.titleThe Exceptional Persistence of India's Unorganized Sectoren
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleThe Exceptional Persistence of India's Unorganized Sector
okr.date.disclosure2013-05-01
okr.date.doiregistration2025-04-10T12:09:06.883041Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/05/17738072/exceptional-persistence-indias-unorganized-sector
okr.globalpracticeEducation
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeTransport and ICT
okr.globalpracticeWater
okr.globalpracticeTrade and Competitiveness
okr.guid683481468042014607
okr.identifier.doi10.1596/1813-9450-6454
okr.identifier.externaldocumentum000158349_20130521090241
okr.identifier.internaldocumentum17738072
okr.identifier.reportWPS6454
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/05/21/000158349_20130521090241/Rendered/PDF/WPS6454.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.topicPrivate Sector Development::E-Business
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicWater Resources::Water and Industry
okr.topicTertiary Education
okr.topicEducation
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication34242d7e-0b6a-546a-b2c5-e97e6e1fab2c
relation.isAuthorOfPublication.latestForDiscovery34242d7e-0b6a-546a-b2c5-e97e6e1fab2c
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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