Impact of Location and type of Enterprise on extent of Informality in Haryana

The concept and scope of the informal employment is no longer confined to a particular region or sector and has been changing through time and space. Two billion of the world’s employed population is working informally. In this concern, present paper intends to estimate the effect of location and enterprise type on the informality extent faced by workers in Haryana by using two-way ANOVA, on unit level data of NSS 68^th round (2011-12). To measure the extent of informality at work place, informality index has been constructed. The study concludes that informality varies with location as well as type of an enterprise. Out of 4 revenue divisions, workers employed in Ambala and Rohtak revenue division bear worse working conditions than those working in Gurugram and Hisar revenue division. Similarly, formal enterprises provide formal work culture and working conditions to their workers. The paper also suggests the policies for reducing the informality extent of workers by inducing formalization of informal enterprises, ensuring decent work standards in informal jobs, and strict implementation of legislative provisions targeting worse working condition for informal workers.