| Description |
1 online resource (59 pages) : color illustrations |
| Series |
IMF working paper, 1018-5941 ; WP/16/47 |
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IMF working paper ; WP/16/47.
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| Contents |
Cover; Contents; I. Introduction; II. Literature Review; III. Two Sector Model with Regulations; 1. Wholesale Producers: The Labor Market; 2. Retailers: Free Entry and the Number of Firms; 3. Household; 4. Capital Producer; 5. Rest of the World; 6. Government Policy; 7. Market Clearing and Aggregation; 8. Shock Processes; IV. Method of Estimation; 1. Data; 2. Calibration; 3. Bayesian Estimation; V. Estimation Results; 1. Posterior Estimates for India; VI. Dynamic Adjustment to Market Deregulation; 1. Labor Market Deregulation; 2. Product Market Deregulation; 3. Reform Combination |
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4. Low InformalityVII. Conclusion; Figures; 1. Despite Improvement, Product Market Regulation Remains High; 2. Informality in India; 3. Deteriorating Employment Conditions for Informal Workers; 4. Long Run Impact of a Fall in Formal Hiring Cost; 5. Short Run Impact of a Fall in Formal Hiring Cost; 6. Long Run Impact of a Fall in Formal Bargaining Power; 7. Short Impact of a Fall in Formal Bargaining Power; 8. Long Run Impact of a Fall in Formal Entry Cost; 9. Short Run Impact of a Fall in Formal Entry Cost |
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10. Long Run Impact of a Fall in Formal Hiring Cost Combined with a Fall in Formal Bargaining Power11. Long Run Impact of a Labor and Product Market Deregulation; 12. Short Run Impact of a Combined Package of Reforms; 13. Impact of Deregulation Reforms with Low Informality; Table; 1. Parameter Calibration, Baseline Model for India; 2. Prior and Posterior Distributions, Baseline Model; 3. Robustness of Result, Alternative and Baseline Model; 4. Impact of Deregulation Policies, Baseline Model; 5. Impact of Deregulation Policies with Low Informality; References; Appendix; Technical Appendix |
| Summary |
This paper investigates the implications of lowering formal regulations in labor and product markets on informality and macroeconomic outcomes in India. We estimate a DSGE model with an informal sector, and rigidities in the formal labor and product markets. Along with increasing GDP and employment, deregulation also leads to lower informality and greater product market competition. Slow reallocation of resources between the formal and informal sectors leads to some adverse impacts in the short run that can be minimized by implementing a combined package of reforms. These impacts are shown to be greater in an economy with a larger informal sector.--Abstract |
| Notes |
"March 2016." |
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"Asia and Pacific Department." |
| Bibliography |
Includes bibliographical references (pages 36-40) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed March 7, 2016) |
| Subject |
Manpower policy -- India -- Econometric models
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Informal sector (Economics) -- India -- Econometric models
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Labor market -- India -- Econometric models
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Unemployment -- India -- Econometric models
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Informal sector (Economics) -- Econometric models
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Labor market -- Econometric models
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Manpower policy -- Econometric models
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Unemployment -- Econometric models
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India
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| Form |
Electronic book
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| Author |
Khera, Purva, (IMFstaff), author.
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International Monetary Fund. Asia and Pacific Department, issuing body.
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| ISBN |
1513545256 |
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9781513545257 |
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