The landscape of self-employment in India: trends, constraints, and policy prescriptions
By: Afridi, Farzana
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Material type: 
BookPublisher: The Indian Journal of Labour Economics Description: 68(1), Jan-Mar, 2025: p. 23-44.Subject(s): self-employment, trends, quality, skills, genderSummary: This paper assesses the structure and quality of self-employment in India, over several decades. 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 digitisation for self-employment and the need for reforming the legal framework of self-employment in India. - Reproduced
https://link.springer.com/article/10.1007/s41027-025-00561-5
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Articles
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Indian Institute of Public Administration | Available | AR136479 |
This paper assesses the structure and quality of self-employment in India, over several decades. 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 digitisation for self-employment and the need for reforming the legal framework of self-employment in India. - Reproduced
https://link.springer.com/article/10.1007/s41027-025-00561-5
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