India Lacks Formal, Salaried Jobs

In the United States a majority of workers work for very large firms and only 10% are self-employed. In India hardly any workers work for large firms and 80-85% are self-employed, as I pointed out in my post India is a much more Entrepreneurial Society than the United States (and that’s a problem).

Data from a draft report by the World Bank summarized by LiveMint show that India has few formal, salaried jobs not just compared to a developed country like the United States but also compared to many other less developed countries around the world.

Solving this problem is one of India’s biggest challenges as the number of workers is increasing rapidly. Land reform and deregulation of labor markets including stopping own goals that discourage firms from growing and formalizing such as requiring absurdly “generous” maternity leave benefits is a first step.

Hat tip: Urbanomics.


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