Indian Economic Development: Employment – Growth, Informalisation and Other Issues · Class 12 · CBSE · Commerce Economics
State two important differences between formal-sector and informal-sector employment, and mention one major problem faced by informal-sector workers.
Practice question from Indian Economic Development: Employment – Growth, Informalisation and Other Issues (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · Subjective · Q-17A765
State two important differences between formal-sector and informal-sector employment, and mention one major problem faced by informal-sector workers.
Solution
Formal employment is characterised by regulated working conditions and social-security benefits, while informal employment generally lacks such safeguards. Consequently, informal-sector workers are more vulnerable to irregular income, insecurity and exploitation.
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