A burgeoning literature on India and China has focused on changes in the overall economy and drivers of growth. In China, a significant literature on the transformation of labour markets has emphasised first, the transfer of surplus labour out of agriculture, and second, the transition towards more efficient allocative mechanisms particularly following the restructuring of the state sector. The growing sphere of ‘informal’ employment in urban areas has not been systematically examined. In India, a larger body of literature has focused on informal employment, but little analysis has been undertaken on the links between this phenomenon, the nature of the labour market and the implications for growth, poverty and welfare. The current project will address the gaps noted above: it will focus on the labour force rather than the economy, and on employment and welfare outcomes rather than the drivers of economic change. It will seek to understand the nature of ‘real’ labour markets through the comparative analysis of two major economies; and to explore the implications of this for poverty and growth.

Read more about the project (pdf)