Growing Informality, Gender Equality and the Role of Fiscal Policy in the Face of the Current Economic Crisis: Evidence from the Indian Economy

Abstract

:This article analyzes the theoretical and practical problems arising from the effect of the ongoing global crisis on the much neglected informal economy, with specific focus on issues concerning women’s employment and decent work. Recognizing growing informality and its disproportionate impact on women workers, the article discusses the challenges and various coping mechanisms adopted by these vulnerable groups. The current wave of fiscal consolidation and austerity measures pursued in most countries in the form of cutbacks on social sector spending and public expenditures is having devastating consequences on the vast majority of the population. A robust fiscal commitment toward direct job creation programs and increased social protection policies has the ability to enhance resilience. Rejecting the fiscal trajectory and the subsequent austerity measures, the article emphasizes the necessity of a macroeconomic policy framework conducive to the objective of achieving a more equitable outcome in an environment of domestic and global challenges.