This volume breaks new ground in exploring trade liberalization and the informal economy, both through field research and a macro-model of two of the most labour-intensive sectors—garments and rice processing. It innovatively compares and contrasts these two methodological approaches. It examines the impact of changes in regulative policy on the informal economy—enterprises as well as workers. Contrary to expectations that the restructuring of the global economy and wide-ranging policy reforms would result in the disappearance of this sector in the Third World, there is only evidence of rapid expansion. The informal sector is a permanent feature of the growth process. Though it provides livelihood to a large number of low skilled labour great wage disparities exist between formal and informal sector workers. These are as much a cause for concern as is their lack of any kind of work or social security. This volume is based on case studies carried out in the northern, southern, and eastern India as well as is in Delhi.

This insightful volume with its innovative methodological experiment will be useful for students, researchers, policymakers, analysts in development economics, and development studies.