Abstract
This article draws upon evidence from urban centres in the Indian state of Karnataka in order to explore the impact of informalisation on labour. It is argued that informalisation is best understood by outlining specific changes to the social relations of production. This issue is approached by comparing and contrasting Marxist claims about class formation with findings from an analysis of Economic Census data. The Economic Census has recorded a rise in waged labour in informal enterprises in urban Karnataka and a rise in sole trading in own-account establishments. It concludes by pointing towards the need for further research into the growing employment of ‘informal workers’ in the formal economy.
Highlights
It is widely argued that labour forces in developing countries have undergone a process of ‘informalisation’ (Breman, 1994; Chen, Vanek & Carr, 2004; Harriss-White & Sinha, 2007; Portes, Castells & Benton 1989)
Based on data derived from Economic Censuses conducted in 1998 and 2005, it suggests that formal employment relations have been eroded in the context of both large and small scale production processes, raising important implications for an understanding of informalisation
It is argued that informalisation is best understood as a historical process that affects the balance between specific social relations of production
Summary
It is widely argued that labour forces in developing countries have undergone a process of ‘informalisation’ (Breman, 1994; Chen, Vanek & Carr, 2004; Harriss-White & Sinha, 2007; Portes, Castells & Benton 1989). Based on data derived from Economic Censuses conducted in 1998 and 2005, it suggests that formal employment relations have been eroded in the context of both large and small scale production processes, raising important implications for an understanding of informalisation.
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