ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Caste, Horizontal and Vertical

justments will impinge upon the relationship between the size of the informal sector and the unemployment rates across regions and over time. Chandra Mohan [1984 found this relationship to be negative (though weak) across Indian states. Over time comparisons showed similar results. He argued that the internal composition of the urban areas can significantly affect this relationship; the relative size of the unorganised sector was significantly higher in the smaller towns whereas the incidence of unemployment was systematically higher in the metropolises and other cities' Except in a few cases, the studies in the volume mainly analyse data on large cities. The processes at work may vary significantly for towns of different sizes. The informal sector is often viewed as a buffer which absorbs excess labour supply. The volume under review shows how differential access to jobs due to inter-personal networks, social structures, etc, can limit the labour-absorbing capacity of the informal sector. Free entry and informal sector are not coterminus. Besides, the informal sector dynamics may derive from a specific demand. The differences across regions in the capacity of the informal sector to absorb excess labour brings market for goods and structural change back into focus. These issues were beyond the scope of the studies in the volume but need to be explored.

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