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

dc.contributor.authorMustafizur Rahman
dc.contributor.authorDebapriya Bhattacharya
dc.contributor.authorMd. Al Hasan
dc.description.abstractThis 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.
dc.publisherThe Asia Foundation
dc.titleThe role of the informal sector in inclusive growth: A state of knowledge study from policy perspectives
dc.subject.expertPoverty Analysis
dc.subject.expertParticipatory Poverty Assessment
dc.subject.expertPoverty Reduction Strategy
dc.subject.expertExtreme Poverty
dc.subject.expertEconomic development
dc.subject.expertGrowth And Poverty
dc.subject.expertMacroeconomic Analysis
dc.subject.expertMacroeconomic Framework
dc.subject.expertMacroeconomic Models
dc.subject.expertMacroeconomic Performance
dc.subject.expertMacroeconomic Planning
dc.subject.expertMacroeconomic Policies
dc.subject.expertMacroeconomic Reform
dc.subject.expertMacroeconomic Stabilization
dc.subject.adbIncome Distribution
dc.subject.adbDemographic Indicators
dc.subject.adbSocial Justice
dc.subject.adbPrice stabilization
dc.subject.adbFood prices
dc.subject.adbPrice policy
dc.subject.adbDevelopment Indicators
dc.subject.adbEnvironmental Indicators
dc.subject.adbEconomic Indicators
dc.subject.adbEducational Indicators
dc.subject.adbDemographic Indicators
dc.subject.adbHealth Indicators
dc.subject.adbDisadvantaged Groups
dc.subject.adbLow Income Groups
dc.subject.adbSocially Disadvantaged Children
dc.subject.naturalSocial change
dc.subject.naturalSocial accounting
dc.subject.naturalInequality of income
dc.subject.naturalEconomic growth
dc.subject.naturalQuality of Life
dc.subject.naturalOpen price system
dc.subject.naturalPrice fixing
dc.subject.naturalPrice regulation
dc.subject.naturalConsumer price indexes
dc.subject.naturalEconomic forecasting
dc.subject.naturalHealth expectancy
dc.subject.naturalSocial groups
dc.subject.naturalPolitical participation
dc.subject.naturalDistribution of income
dc.subject.naturalDeveloping countries
dc.subject.naturalRural community development
dc.subject.naturalMass society
dc.subject.naturalSocial change
dc.subject.naturalSocial policy
dc.subject.naturalSocial stability
dc.subject.naturalSustainable development
dc.title.seriesBangladesh Economic Dialogue on Inclusive Growth Research Report
dc.title.volumeNo. 3
dc.contributor.imprintOverseas Development Institute
oar.themeLabor Migration
oar.adminregionSouth Asia Region
oar.authorRahman, Mustafizur
oar.authorBhattacharya, Debapriya
oar.authorHasan, Md. Al

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