Which of the following statements is incorrect regarding the employment sector in India?
A. The informal sector must be credited with creating jobs and keeping unemployment low.
B. By most measures informal sector jobs are much worse than formal sector ones—wages are, on average, more than 20 times higher in the formal sector, though informal sector wages have grown somewhat faster between 1989-2010.
C. By most measures formal sector jobs are much worse than informal sector ones—wages are, on average, more than 20 times higher in the informal sector, though informal sector wages have grown somewhat faster between 1989-2010.
D. Formal sector jobs also score better on some non-pecuniary grounds.
Answer:C
Which of the following statements is incorrect regarding the employment sector in India?
A. The informal sector must be credited with creating jobs and keeping unemployment low. B. By most measures informal sector jobs are much worse than formal sector ones—wages are, on average, more than 20 times higher in the formal sector, though informal sector wages have grown somewhat faster between 1989-2010. C. By most measures formal sector jobs are much worse than informal sector ones—wages are, on average, more than 20 times higher in the informal sector, though informal sector wages have grown somewhat faster between 1989-2010. D. Formal sector jobs also score better on some non-pecuniary grounds.
Explanation: The informal sector should thus be credited with creating jobs and keeping unemployment low. Yet, by most measures informal sector jobs are much worse than formal sector ones—wages are, on average, more than 20 times higher in the formal sector, though informal sector wages have grown somewhat faster between 1989-2010. Formal sector jobs also score better on some non-pecuniary grounds. For example, they allow workers to build employment history - which is important for gaining access to cheaper formal credit.