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The Labor Market

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Literature on the construct of the labor market broadly draws upon the supply of and demand for labor. As regards the supply of labor and the determinants thereof one can trace the literary developments back up to the mercantilist era . The explanations for labor force participations are varied and range from the seminal works of Jevons (1888) to Robbins (1930) followed by Douglas, P. (1934) up to Mincer (1962). Jevons on his part laid the foundations of many a latter developments in the field of supply of labor and reported that the labor supply function was negatively sloped with respect to wages. This idea is embedded into what he wrote:
"Supposing that circumstances alter the relation of produce to labour, what effect will …show more content…

289-293; Simon, 1951). There can, as such not be a universal theory that would guide and explain even a single dimension of such a diverse market structure. The decision to labor, the wages to be paid, the level of work effort to be applied, the range of activities to which the employee may be directed, the duration and content of the contract, - and the particular combination of wages and hours worked represents only a subset of the bundle of items involved in the exchange. All these decisions and a myriad of other socio-economic characterizations make the way in which preferences of the labor and opportunities from the market come together to determine outcomes in the labor …show more content…

Certain criteria, of late have been laid down to identify the informal sector enterprises: noteworthy among them are, it employs 10 persons or less; it operates on an illegal basis - contrary to the government regulations; members of the household of the head of the enterprise work in it; it does not observe fixed hours/days of operation; it does not depend on formal financial institutions for its credit needs; its output is normally distributed directly to the final consumer; almost all those working in it have fewer than six years of schooling and for certain activities it operate in semi-permanent or temporary premises, or in a shifting location and it does not use mechanical and electrical energy. The informal sector consists of small-scale units engaged in the production and distribution of goods and services with primary objective of generating employment and income to their participants notwithstanding the constraints on capital, both physical and human and know-how Sethuraman (1976). Based on the activity status the informal sector has been described as the non-factory sector, which includes those employed in small establishments, the self employed, the casual labour and home-workers. It is

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