Informal Cleaning Contract by dor10899

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									INFORMAL SECTOR IN INDIA



Workshop 7; 23 – 06
15.00-16.00 pm
Informal/Unorganised Sector in India


  The First Indian National Commission on
   Labour (1966-69) defined „unorganised
   sector workforce‟ as –
 “those workers who have not been able to
  organize themselves in pursuit of their
  common interest dues to certain constraints
  like casual nature of employment, ignorance
  and illiteracy, small and scattered size of
  establishments”.
Concept of Informal Sector

Informal employment includes1:

     Own-account workers working in their own informal enterprise
     Own-account worker producing goods exclusively for own final use by
      their household.
     Contributing family workers, irrespective of whether they work in
      formal or informal sector enterprises
     Members of informal producers‟ cooperatives
     Employees holding informal jobs, whether employed by formal sector
      enterprises, informal sector enterprises or as domestic worker
      employed by households and


1. International Conference of Labour Statistics (2003)
    Segments of Informal Economy
   Wage work for informal enterprises
   Domestic work without a regular contract
   Casual day labour without a fixed employer
   Unregistered or undeclared work for formal or informal firms
   Temporary and part-time work for formal firms
   EXAMPLES (total = 106 activities):
       Agriculture: landless labourers, small farmers, traditional artisans,
        animal husbandry
       Industry: workers in brick-kilns, construction, beedi-making, incense
        stick
       Services: workers in local transport, shops, domestic servants,
        community services like street cleaning, street vendors, garbage
        collectors
       Small Workshops: shoe makers, garment makers and embroiderers
       At Home: garment workers artisans or craft producers
       On Rivers, Ponds, Lakes, and Oceans: fishermen, shippers
 Informal Employment

Employees are considered in informal employment when
 their employment relationship, in law or practice, is not
  subject to:
   National labour legislation
   Income taxation
   Social protection or
   Entitlement to certain employment benefits, e.g. paid
      annual leave, sick leave, etc.
Estimates of Employment in India2
       Industrial Category               No. of persons (in millions)
                                  Formal Sector             Informal Sector
  Agriculture                                     1.39                   238.87
  Non-Agriculture                              26.68                      131.5
  Mining & Quarrying                              1.01                        1.25
  Manufacturing                                   6.71                    37.07
  Electricity, Gas And Water                        1                         0.04
  Construction                                    1.17                    16.36
  Trade, Hotels And Restaurants                   0.49                    40.37
  Transport, Storage & Comm.                      3.15                    11.48
  Financial Services                              1.65                        3.29
  Community Services                           11.49                      21.64
  All Sectors                                  28.07               (93%) 370.37

  Year: 1999/00 (Total labour force: 406 million) (GDP share: 63%)
 Labour Force Characteristics3
      Urban            Share (in percentage)            Rural            Share (in percentage)
                      Male    Female    Total                            Male    Female    Total
1. Employed            51.8      13.9     33.7   1. Employed              53.1      29.9    41.9
2. Unemployed           2.4       0.8      1.6   2. Unemployed             0.9       0.3     0.6
3. Labour Force                                  3. Labour Force
(1+2)                  54.2      14.7     35.3   (1+2)                     54       30.2    42.5
4. Not counted in                                4. Not counted in the
the labour force       32.8      71.7     51.4   labour force             30.3      53.9    41.7
5. Working age
                                                 5. Working age
population (3+4)        87       86.4     86.7
                                                 population (3+4)         84.3      84.1    84.2
6. Non-working age
                                                 6. Non-working age
population              13       13.6     13.3
                                                 population               15.7      15.9    15.8
7. Population (5+6)    100       100       100
                                                 7. Population (5+6)      100       100      100

  Year: 1999/00
Regulatory support
    No formal wage policy set by the government

    Wages set by state governments as per some cost of living
     calculation and central government directives on minimum
     wages.

    The Constitution of India (Article 41) laid down that the State
     shall make effective provision for securing these rights
        Article 41 Right to work, to education and to public assistance
         in cases of unemployment, old age, sickness and disablement
        Article 42 Provision for just and humane conditions of work
         and maternity relief. The Indian Government took several
         steps in compliance of the constitutional requirements.

    Indian Ministry of Labour set up from time to time Welfare Funds
     for five specific category of unorganised workers. These workers
     include Building and Other Construction Workers, Beedi workers,
     Cine workers and certain categories of non-coal mine workers.
Researching informal sector - The
       Wage Indicator way

    Possible issues of debate
Classifying the sector

       Clustering according to occupation
         Issues: more than one occupation at a time,
           seasonal variation, variation according to age
           and experience
         No of occupation categories are large : 106

       Typical clustering done according to rural/urban or
        income level or gender
       Or sometimes clustering done according to
        household characteristics
Critical characteristics for capture through
the questionnaire
   Socio-economic conditions including illiteracy and level of
    awareness in critical areas
   Nature of work (seasonal, entails migration in search of jobs)
   Payment:
        Low/irregular wages or income
       Delayed/no payment of wages
       Generally piece rate basis or on daily basis
   Social security (formal/govt. and informal/family/lender)
   Formally organized as a union/association
   Bargaining power (formal through association and informal
    through expertise/caste/education level)
   Working conditions – health and safety
   Harassment by police, govt. officials
   Nature of child care and family support at home
   Nature and intensity of problems in obtaining alternative
    employment
   Provision/non provision of reasonable capital/credit
Possible Methodologies

     Purely work related analysis
         primary survey of an localized area or industry (formal or SSI)
          or gender or occupation based on the current instrument
     Socio-economic analysis
         Include household data – analysis includes parameters like
          calorie intake, indirect or hidden wages
     Sociological analysis
         Simulating regional/occupational dynamics including
          economics using instrument and household data – will give a
          complete scenario of barriers to transparency in wages and
          possible ways to deal with it.
Possible data/information sources

      WI questionnaire: primary survey – customized,
       involves field work
      Support from national surveys like the decennial
       Population Census (conducts surveys after every 10
       years) or NSSO (conducts the survey on regular interval
       of five years) or enterprise surveys like The Census of
       Small-Scale Industries (SSI)
Some more issues
Methodological issues
      Monthly aggregation of data becomes difficult when frequent
       movement of family member or job.
      Direct and indirect wages and their sources
      Data as mostly aggregates and guesses: no culture of systematic
       data compilation or calculation either in mind or paper: its an
       urbanized mind orientation
Sociological issues
      Illiteracy
      However, people open to questioning, receptive to methodologies
       and ideas
Possible ways ?
     Clustering: our own based on our objectives, balancing
      certain sectors, gender and double and single income
      individuals
     Include number of opinion questions
         Designing unstructured/opinion questions for individuals and
          for groups.
         Multiple questions for same item/variable to identify
          misinterpretations and ensure consistency
     Unstructured/informal interviews and discussions in
      groups crucial to get correct information
     Indirect estimation through other developmental
      indicators like expenditure of food, health or education
      or access to any of these …problem: family decision
      could be culture based
Thank you

								
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