A primary objective of this paper is to examine if the informal sector in India performs the role postulated in probabilistic migration models through a testing of the empirical validity of the assumptions on which these models are founded. The paper also tests the hypotheses of the segmented labour market model that human capital is rewarded differently in the formal and informal sectors, and that barriers that are not based on human capital restrict mobility between the two sectors. Section II describes the data base, and discusses the methodology to be used in the analysis of the data. Section III contains the empirical results, and Section IV the conclusions.
URL : http://scholarship.haverford.edu/cgi/viewcontent.cgi?article=1015&context=economics_facpubs