Informal Sector Enterprises: Some Measurement Issues

23 Pages Posted: 10 May 2011

See all articles by Kaushal Joshi

Kaushal Joshi

Asian Development Bank

Glenita Amoranto

Asian Development Bank

Rana Hasan

Asian Development Bank; University of Maryland - Department of Economics

Date Written: May 2011

Abstract

In this paper, we examine the differences in the measures of: (i) profits of an enterprise obtained from a detailed set of questions on incomes and expenses of the enterprise, versus profits obtained through a single direct question; and (ii) gross value added (GVA) obtained using the production approach as the difference between output and intermediate consumption from a detailed set of questions on incomes and expenses, versus GVA using the income approach by asking a few questions on factor incomes, and a single direct question on profits. We use data from the 56th round survey of unorganized manufacturing conducted by the National Sample Survey Organization of India during the period July 2000–June 2001. We also examine if the differences vary with the characteristics of the enterprises, and suggest further empirical research to develop suitable tools for providing accurate measurements of informal sector enterprises.

Keywords: informal sector, unorganized sector, gross value added, enterprise profits, national sample survey organization

JEL Classification: E01, E23, E26

Suggested Citation

Joshi, Kaushal and Amoranto, Glenita and Hasan, Rana, Informal Sector Enterprises: Some Measurement Issues (May 2011). Review of Income and Wealth, Vol. 57, pp. S143-S165, 2011. Available at SSRN: https://ssrn.com/abstract=1837190 or http://dx.doi.org/10.1111/j.1475-4991.2011.00449.x

Kaushal Joshi (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Glenita Amoranto

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Rana Hasan

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
808-944-7590 (Phone)
808-944-7399 (Fax)

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