INFORMALITY, VULNERABILITY AND DEVELOPMENT

2011 ◽  
Vol 16 (02) ◽  
pp. 199-211 ◽  
Author(s):  
DIBYENDU MAITI ◽  
ARUP MITRA
Keyword(s):  
Human Capital ◽  
Informal Sector ◽  
Wage Gap ◽  
Industrial Sector ◽  
The Other ◽  
Human Capital Formation ◽  
Poor Growth ◽  
Development Expenditure ◽  
The Government ◽  
Informal Sector Employment

This paper makes an attempt to estimate the index of informal sector employment that can be attributed to the supply-push phenomenon. Factors explaining the inter-state variations in this index include the industrial-informal sector wage gap, revenue expenditure and development expenditure incurred by the government. Increased development expenditure brings a decline in distress-led informalization because education, health and infrastructure facilities tend to enhance the employability of an individual. However, education as such does not reduce the residual absorption in the informal sector unless there is improvement in quality. The paper also notes an increase in inequality with an increase in distress-led informalization. Adoption of labor intensive technology in the organized or formal industrial sector is indeed crucial for pro-poor growth. The other policy implication is in terms of enhanced investment in the areas of human capital formation and overall development of the region.

scholarly journals Pengeluaran Pemerintah dan Pertumbuhan Ekonomi di Indonesia : Analisis Panel Seemingly Unrelated Regression

2018 ◽  
pp. 1
Author(s):  
Bayu Kharisma ◽  
Adji Pratikto
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Industrial Sector ◽  
Positive Influence ◽  
Seemingly Unrelated Regression ◽  
The Other ◽  
Security Sector ◽  
The Government ◽  
Level Of Significance ◽  
Almost All

The paper aims to examine how the growth impact of government spending in Indonesia, with a focus on several expenditure sectors, namely defense, education, health, agriculture, transport and communications, and manufacturing sectors. Based on the 17 sectors studied, only 6 sectors significantly influence economic growth, namely industrial sector, agriculture and irrigation sector, transportation and transportation sector, environment and spatial sector, political sector and mass media lighting, and security of order. Meanwhile, of the six sectors, only the security sector of order has a positive effect on economic growth, while the other five sectors negatively affect economic growth. If not paid attention to the level of significance, almost all sectors of development expenditure have a negative impact on economic growth, only 5 sectors that have a positive influence that is the labor sector, education sector, national culture, trust in God YME, youth and sports, housing and residential sector , the science and technology sector, as well as the security and order sectors. However, only the security sector of order has a significant effect, while the other four sectors have no significant effect. This result differs from previously conclusions, where their overall conclusion of the government development spending sector has a significant effect, the effect being positive. However, the same conclusions are generated for the security and order sectors, where the results are positive and significant.

scholarly journals Short Term Vocational Skill Test in Nepalese Context

2015 ◽  
Vol 1 ◽  
pp. 54-61
Author(s):  
Rajan Binayek Pasa
Keyword(s):  
Human Capital ◽  
Local Level ◽  
Skill Training ◽  
Capital Formation ◽  
Easy Access ◽  
Testing System ◽  
Specific Work ◽  
Human Capital Formation ◽  
Short Term ◽  
The Government

This paper assesses the possible contribution of short term vocational skill tested graduates and labour migration in foreign employment and remittances to Nepalese economy.  An attempt has also been made to assess the role of effective skill testing system that can be provided even in local level as for equal accessibility to all skilled workforces throughout the country. Producing skill tested graduates is known to be a process of human capital formation that is equally benefitted to self and society. Due to easy access of government policy, Nepalese youths are working in international labour market and at a time when the country's major economic indicators are not favorable, the remittances have played a vital role in national economic growth. Though remittances earning is a boon to the economy, the facilities are inadequate to back up the increasing trend of migration. Inadequate knowledge on skill testing system and lack of skill training and poor opportunities to involve in trade specific work are some of bottlenecks to Nepalese youths. This paper suggests that formulation and effective implementation of short term vocational skill testing system in local level is the need of today so that most of foreign labour migrants can grab semi-skilled employment opportunities through specific vocational skill tested certification. The government needs to play a proactive role to promote foreign employment by inducting and adhering to the policy of socio-economic development and human capital formation. Replicating the status and impact of short term vocational skill tested graduates and migrated labour in foreign employment, state mechanism has to be endorsed in our national context for development and promotion of skill testing mechanism in local level and regularization of foreign employment. In such a situation, majority of youths could get opportunities to take skill tested certificate that can encourage them to become a vocational skill and trade occupation specific. Such types of work specification could ultimately increase working efficiency and productivity of each workforce and economic prosperity of the country.DOI: http://dx.doi.org/10.3126/jtd.v1i0.13091 Journal of Training and Development Vol.1 2015: 54-61

scholarly journals Does More Spending on Education Matter to Human Capital Formation? Study Case of Bengkulu Province, Indonesia

2018 ◽  
Vol 22 (1) ◽  
pp. 63
Author(s):  
Nurfitriani Nurfitriani ◽  
Romi Bhakti Hartarto
Keyword(s):  
Human Capital ◽  
Panel Data Analysis ◽  
Capital Formation ◽  
Positive Influence ◽  
Women Empowerment ◽  
Human Capital Formation ◽  
Study Case ◽  
The Government ◽  
Capital Development ◽  
Quality Infrastructure

Based on Statistics Indonesia (BPS), Indonesia will face a demographic bonus era during 2020-2035. That implies that the number of productive-age population will be higher than elderly peopleand children (dependents). This phenomenon offers an opportunity due to a lower dependencyburden. However, the situation could be catastrophic if the government is not ready to equip theproductive age population with necessary skills. The objective of this study is to determine whetheror not higher spending on education has positive influence on human capital formation in BengkuluProvince. The research used panel data analysis of ten regions in Bengkulu Province for the 2010-2014 periods. Research results showed that spending on education does not have significant impacton human capital development, while women empowerment and infrastructure have positive effecton human capital. Our results imply that more spending on education does not matter if it is notsupported by quality infrastructure that makes education facilities accessible.

scholarly journals Resource Rents, Human Development and Economic Growth in Sudan

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 99
Author(s):  
Elwasila Saeed Elamin Mohamed
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Life Expectancy ◽  
Human Development ◽  
Gdp Growth ◽  
Resource Rents ◽  
Long Run ◽  
Development Expenditure ◽  
Natural Resource Rents ◽  
The Government

This study investigates the relationship between natural resource rents, human development and economic growth in Sudan using co-integration and vector error correction modelling (VECM) over the period 1970–2015. Institutions proved to play a role in determining a difference in whether a country is cured or blessed by resource abundance. In the case of Sudan, no time series data is available on institutional quality and is therefore excluded from the analysis. The role of institutions and macroeconomic policies is captured by other variables included in the empirical model. Co-integration tests confirm the existence of a long run equilibrium relationship between resource rents, human development and economic growth in Sudan. Empirical evidence from the estimated VECM shows that economic growth is positively affected by resource rents and development expenditure but surprisingly negatively affected by life expectancy at birth in the short run. In the long run, resource rents, school enrolment, life expectancy and financial development have negative significant effects on economic growth. Only development expenditure is found to affect economic growth positively. Resource rents are found to weaken education and health levels and this is indirectly channeled into negative effects of resource rents on economic growth. These results suggest that the government has been neglecting investments to build up human capital necessary for inclusive growth. Long run Granger causality tests show a unidirectional causal relationship running from resource rents to GDP growth as well as from development expenditure to GDP growth. School enrollment, life expectancy and financial development are found to be negatively Granger causing GDP growth. Long run causal relationships reconfirm that a resource curse exists indirectly mediated by weak human capital. The study recommends that the government should manage natural resource rents with a policy framework supporting creation of a virtuous economic circle between human development and economic growth. If pursued, this would promote sustained, inclusive and equitable growth in Sudan.

scholarly journals Human Capital Formation and Employability in An Information Economy: A Study of New Zealand's ICT Sector

1970 ◽  
Author(s):  
Ashish Malik
Keyword(s):  
Human Capital ◽  
New Zealand ◽  
Trade Unions ◽  
Secondary Data ◽  
Capital Formation ◽  
Information And Communications Technology ◽  
Present System ◽  
Human Capital Formation ◽  
Firm Level ◽  
The Government

Human capital formation is vital in furthering the employability of a nation's workforce. Employability in a networked and information society has undergone a paradigm shift. The key participants in the labour market- employers, employees, trade unions and the government have to proactively address various issues emerging at the global level by assessing its implications for them at macro and micro levels and by furthering human capital formation so as to maintain the employability of their workforce. This paper presents the trends emerging at global levels, the extent to which they are reflected in OECD countries and in New Zealand, with a specific focus on its ICT (Information and Communications Technology) sector. It further discusses the dilemma faced by different players in contributing in furthering human capital formation and employability. Secondary data pertaining to emerging trends on human capital and employability in the ICT sector is analysed from various government agencies and international organisations. Although there is some strength in the present system in terms of industry training provided in New Zealand, there are few areas of investment for human capital and some firm level practices which affect employability and human capital formation in future.

scholarly journals Human Capital Formation and Economic Growth in Emerging Asia: Empirical Evidence Using Panel Data

2020 ◽  
Vol 3 (2) ◽  
pp. 205-212
Author(s):  
Muhammad Atiq-ur- Rehman ◽  
Suleman Ghaffar ◽  
Kanwal Shahzadi ◽  
Rabail Ghazanfar
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Fixed Effects ◽  
Random Effect ◽  
Capital Formation ◽  
Human Capital Formation ◽  
Data Set ◽  
The Government ◽  
The Impact

After the emergence of endogenous growth theory, the role of human capital along with physical capital is considered to be imperative in promoting economic growth. The government social sector spending, mainly on education and health, contributes in forming human capital and promotes economic growth. This study examines the impact of health and education provisions on economic growth of emerging Asian economies, including Bangladesh, China, India, Indonesia, Malaysia, Pakistan, Philippine, and Thailand. Using the data set for 1995-2018, the fixed effects (FE) and the random effect (RE) methods of panel data estimation are employed. Both methods reveal that the health and education support the human capital formation and stimulate economic growth.

Contradictions of “Doing Development”

2009 ◽  
Vol 7 (1) ◽  
Author(s):  
Saumya Chakrabarti
Keyword(s):  
Informal Sector ◽  
The Other ◽  
Formal Sector ◽  
Dual Economy ◽  
Farm Population ◽  
Modern Economy ◽  
The Government ◽  
Symbiotic Relation ◽  
Surplus Population ◽  
Traditional Economy

We construct an economy composed of modern/formal sector and the government and situate it within an exogenously given traditional economy consisting of farm and non-farm activities. The particularities of interactions between formal sector, government and agriculture on one hand and between farm and non-farm sectors on the other are discussed and the departures from the literature are identified. Next, we propose, for accumulation and growth in formal sector a large part of agriculture is modernized and thus there is drain of resources from the traditional economy. This expropriates a sizeable section of non-farm population from the means of consumption and reproduction. Consequently, a vast “surplus population” is created endogenously, which remains outside the domain of capital. This phenomenon points at a fundamental conflict between the modern/formal sector and the traditional nonfarm activities in presence of agricultural-supply-constraint, which was missed out in the orthodox “dual economy” literature proposing only a frictionless transition. Next, following the dictum of “development management” we assume that this “surplus population” is rehabilitated in the newly “discovered” and valorized informal sector. But, contrary to the mainstream position which asserts a symbiotic relation between this informal sector and other sectors of a less-developed-economy we propose that, this promotion of informal activities either generates formal – informal contradiction or engenders a conflict within the non-modern economy in the form of contradiction between the valorized informal sector and the residual petty non-farm activities. Hence, the projection of informal sector as a cushion mitigating unemployment is nothing but a myth.

scholarly journals EMPLOYMENT IN THE INFORMAL SECTOR IN NIGERIA: IMPLICATIONS FOR SUSTAINABLE ECONOMIC DEVELOPMENT

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Amaka Ogochukwu Onwo ◽  
Gladys Amaechi Ohazulike
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Industrial Sector ◽  
Development Planning ◽  
Economic Downturn ◽  
Large Share ◽  
The Past ◽  
Global Workforce ◽  
Global Concern ◽  
The Government

The problem of employment has become a central global concern in recent times. This makes the government and development partners to be fully engaged in finding a lasting solution to the problems. In the past, development planning efforts were concentrated on the development of modern industrial sector. Today, there is renewed interest in the informal economy worldwide. This is because a large share of the global workforce and economy is informal and because the informal sector is growing in many contexts and appearing in new places and guises. The informal sector serves as a buffer against unemployment in times of economic downturn, allowing an increasing share of the population to earn a livelihood from the sector rather than stay openly unemployed with no income. The sector has also played a key role in cushioning the adverse impact of economic crises. The paper therefore interrogated the nature of employment in the informal sector and is anchored on Modernisation theory. This paper is based on a desk and literature review of relevant articles and publications as well as on employment and the informal sector. The paper revealed that Nigerian Informal Sector is a major contributor to the Nigerian economy, accounting for a significant portion of employment and national Gross Domestic Product and also the informal sector currently accounts for over half of global employment and as much as 90% of employment in some of the developing countries like Nigeria. The paper therefore recommends that efforts should be made by the government and its agencies to create more jobs. Secondly, policies should be introduced to address identified challenges in the informal sector towards improving productivity and incomes of informal sector workers.

Sign in / Sign up

Export Citation Format

Share Document