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    The role of the informal sector in inclusive growth: A state of knowledge study from policy perspectives

    Rahman, Mustafizur; Bhattacharya, Debapriya; Hasan, Md. Al | July 2018
    Abstract
    This study takes a close look at the various dimensions of informality in Bangladesh from labour market and sectoral-enterprise perspectives. The specific issues examined include: the sectoral background of informal employment; reasons why informality is so persistent (push and pull factors); the formal and informal employment interface (including informal labour as a feature of the formal sector coexisting with formal employment); ownership patterns in the informal sector; earnings from formal and informal labour; the nature of the informal–formal continuum in value chains; sectoral distribution; gender divide and educational background; productivity, and issues of graduation from informal to formal employment. While some of these issues have been extensively studied in the context of south American developing countries (e.g. Perry et al., 2007), key issues demand more detailed examination and analysis in Bangladesh’s context. Addressing issues related to informality is important for inclusive economic growth, which Bangladesh aspires to pursue in light of its Seventh Five Year Plan for the 2016–20 period and other key policy documents. Like many developing countries, Bangladesh is currently experiencing the so-called Lewis turning point, where labour moves from the agricultural sector to the rural non-farm and urban sectors. Indeed, a large part is being absorbed by the urban informal service sector, mostly in low-paying jobs. It is pertinent to note here that studies show that a 1% rise in agricultural income has the capacity to reduce poverty by 0.39% compared to 0.11% for non-agricultural income (Hossain et al., 2017). If these two trends are considered in tandem, the need for an in-depth study of the dynamics of Bangladesh’s labour market, particularly focusing on informal employment and inclusiveness of the development process, is clear.
    Citation
    Rahman, Mustafizur; Bhattacharya, Debapriya; Hasan, Md. Al. 2018. The role of the informal sector in inclusive growth: A state of knowledge study from policy perspectives. © The Asia Foundation. http://hdl.handle.net/11540/9322.
    Keywords
    Poverty Analysis
    Participatory Poverty Assessment
    Poverty Reduction Strategy
    Extreme Poverty
    Economic development
    Growth And Poverty
    Macroeconomic
    Macroeconomic Analysis
    Macroeconomic Framework
    Macroeconomic Models
    Macroeconomic Performance
    Macroeconomic Planning
    Macroeconomic Policies
    Macroeconomic Reform
    Macroeconomic Stabilization
    Income Distribution
    Demographic Indicators
    Social Justice
    Price stabilization
    Food prices
    Price policy
    Development Indicators
    Environmental Indicators
    Economic Indicators
    Educational Indicators
    Demographic Indicators
    Health Indicators
    Disadvantaged Groups
    Low Income Groups
    Socially Disadvantaged Children
    Social change
    Social accounting
    Inequality of income
    Economic growth
    Quality of Life
    Open price system
    Price fixing
    Price regulation
    Consumer price indexes
    Poor
    Economic forecasting
    Health expectancy
    Social groups
    Political participation
    Distribution of income
    Developing countries
    Rural community development
    Mass society
    Social change
    Social policy
    Social stability
    Population
    Sustainable development
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    Citable URI
    http://hdl.handle.net/11540/9322
    Metadata
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    Thumbnail
    EDIG-No.3-Role-of-the-informal-sector-in-inclusive-growth.pdf (2.008Mb)
    Author
    Rahman, Mustafizur
    Bhattacharya, Debapriya
    Hasan, Md. Al
    Theme
    Poverty
    Economics
    Labor Migration
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise