Is it necessary to generate employment in the formal sector rather than in the informal sector? Why? | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-7 Employment: Growth, Informalisation and Other Issues





Q.18:- Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?

 

Answer
Yes, it is necessary to generate employment in the formal sector rather than in the informal sector because:
1. Social security benefits are provided in the formal sector like pension, provident fund and gratuity etc.
2. Workers and enterprises in the formal sector get regular and more income as compared to informal sector.
3. Technology used in the formal sector enterprises is updated.
Therefore, generating employment in formal sector helps in reduction of poverty and income inequalities.