Urban Informal Sector-Concepts, Indian Evidence and Policy Implications

Concepts, Indian Evidence and Policy Implications Meera Mehta Despite the failure of the 'modern' sector to absorb labour supplies from the rural areas, large-scale unemployment has not been rampant in the metropolitan centres, as would be predicted by competitive models. The surplus labour unable to gain entry into the 'modern' sector has been generally found to be absorbed by the rest of the urban economy which has been loosely termed as the informal sector It is only in the last decade that this sector has become a focus of research in the area of urban labour markets.