IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17842.html
   My bibliography  Save this paper

The Landscape of Self-Employment in India: Trends, Constraints and Policy Prescriptions

Author

Listed:
  • Afridi, Farzana

    (Indian Statistical Institute)

Abstract

This paper assesses the structure and quality of self-employment in India over a decade. India, historically, has had a much larger share of workers who are self-employed and a smaller proportion of wage and salaried workers. This structure of labour force participation has not shifted much in decades. In recent years, the proportion of self-employed has risen relative to the pre-pandemic era, and much more so for women. At the same time, significant underemployment accompanies low earnings of the self-employed. The paper highlights three key constraints for improving the quality of or transitioning out of self-employment – vocational skilling, access to formal credit and legal support for entrepreneurship. It concludes by discussing the implications of technological change and digitization for self-employment and the need for reforming the legal framework of self-employment in India.

Suggested Citation

  • Afridi, Farzana, 2025. "The Landscape of Self-Employment in India: Trends, Constraints and Policy Prescriptions," IZA Discussion Papers 17842, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17842
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp17842.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    quality of work; gender; trends; self-employment; India;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp17842. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.