Differentiate between formal sector and informal sector.
Download our app for free and get started
Differences between formal sector and informal sector:
| S.No. |
Formal Sector
|
Informal Sector
|
| 1. |
All public and private sector establishments which employ 10 or more hired workers comprise the formal sector.
|
All establishments which employ less than 10 workers comprise the informal sector.
|
| 2. |
Government exercises control over this sector by passing necessary acts and formulating rules and regulations.
|
Government has no control over this sector. Except for the Minimum Wages Act, no other act is applicable on this sector.
|
| 3. |
Workers working in this sector are entitled to social security benefits.
|
Workers working in this sector are not entitled to social security benefits.
|
| 4. |
The workers working in formal sector have a right to form trade unions.
|
The workers working in informal sector do not enjoy any such right.
|
| 5. |
Formal sector offers better pay scales to its workers.
|
The pay scales in the informal sector are comparatively low.
|
| 6. |
Workers working in formal sector enjoy job security. They cannot be dismissed without giving them a due notice and/ or compensation.
|
Workers working in informal sector does not enjoy job security. They can be dismissed without a notice and no compensation is offered to them.
|
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionWhat is seasonal unemployment? Suggest measures for reducing this kind of unemployment in India.
- 2View Solution
- Why are less women found in regular salaried employment?
- Analyse the recent trends in sectoral distribution of workforce in India:
Sector1993 - 941999 - 20002011 - 2012Primary6464.448.9Secondary1615.824.3Services2023.826.8 - 3View SolutionWhat steps have been taken by the government to solve the problem of unemployment in rural areas?
- 4View SolutionAnalyse the growth and changing structure of employment in India during the period 1950–2010.
- 5View SolutionWhy are less women found in regular salaried employment?
- 6View SolutionIt was envisaged by the developmental planning that 'as the economy grows' more and more workers become formal sector workers and the number of workers in the informal sector would fall. But in the case of India the reverse happened. Why so? Explain.
- 7View SolutionWhat should be the main elements of employment? policy' in India in the present context?
- 8View SolutionWhat are the various types of unemployment?
- 9View Solution
- Mention the sources of data available on unemployment.
- Explain any three different types of unemployment prevailing in our economy.
- 10View SolutionEconomists say that if casualisation increases the earning of the people, then such phenomenon should be welcomed. Suppose a marginal farmer becomes a full-time agricultural labourer do you think he will be happy even if he earns more in his daily wage work? Or will a permanent and regular worker of the pharmaceutical industry be happy if he becomes a daily wage labourer, even if his overall earnings increase? Discuss.