GS3Economy · S&T · Environment · Security· Employment & inclusive growth· Mains·
Labor productivity and structural transformation: a key GS3 topic regarding the informal economy.
Economists Rajeer Jat and Bharat Ramaswami published a study in the Journal of Development Economics highlighting that a majority of non-farm workers remain in low-productivity informal sectors.
The study utilized Reserve Bank of India (RBI) KLEMS data spanning from 1999 to 2024. It revealed that 63% to 75% of non-farm workers are employed in informal industries where productivity levels are indistinguishable from the agricultural sector.
Which institution's KLEMS data was utilized to study non-farm worker productivity?
Answer: (d) Reserve Bank of India — The study utilized Reserve Bank of India (RBI) KLEMS data spanning from 1999 to 2024.
Q. Discuss the structural challenges in transitioning India's informal workforce into high-productivity formal sectors and the role of human capital investment in this transition.
Dimensions to cover in your answer
Keywords: informal economy · labor productivity · human capital · structural transformation · formalization
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