Indian Economic Development: Employment – Growth, Informalisation and Other Issues

Topics in this chapter

• Employment Concepts and Measurement
• Employment Status and Livelihoods
• Formalisation and Worker Protection
• Unemployment Types and Underemployment
• Growth, Employment and Development
• Rural Employment and MGNREGA

Cheat sheet

Practice questions

1. Question 1Q-013C45

   When an economy experiences a substantial rise in output but employment increases only marginally, the situation is best described as:

   1. A.Disguised unemployment
   2. B.Jobless growth
   3. C.Seasonal unemployment
   4. D.Full employment
   See the answer and solution
2. Question 2Q-39DAC7

   In a village, six family members work on a small farm. If two members stop working, the farm's total output remains unchanged. This situation illustrates:

   1. A.Open unemployment
   2. B.Disguised unemployment
   3. C.Educated unemployment
   4. D.Structural unemployment
   See the answer and solution
3. Question 3Q-D08FC8

   A manufacturing company replaces many regular employees with contract workers who perform similar tasks but do not receive job security, provident-fund benefits or paid leave. This change is an example of:

   1. A.Formalisation of employment
   2. B.Informalisation of the workforce
   3. C.Increase in self-employment
   4. D.Reduction in labour force participation
   See the answer and solution
4. Question 4Q-17A765

   State two important differences between formal-sector and informal-sector employment, and mention one major problem faced by informal-sector workers.

   See the answer and solution
5. Question 5Q-13CC95

   In a town with a population of 2,000, 800 persons are employed and 100 persons are unemployed but actively seeking work. What is the labour force participation rate?

   1. A.40%
   2. B.45%
   3. C.50%
   4. D.55%
   See the answer and solution