TY - BOOK ID - 85502504 TI - Macroeconomic Impact of Product and Labor Market Reforms on Informality and Unemployment in India AU - Anand, Rahul. AU - Khera, Purva. PY - 2016 SN - 1513557874 1513545329 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Manpower policy KW - Informal sector (Economics) KW - Labor market KW - Employees KW - Market, Labor KW - Supply and demand for labor KW - Markets KW - Supply and demand KW - Macroeconomics KW - Economics: General KW - International Economics KW - Labor KW - Finance: General KW - Foreign Exchange KW - Informal Economy KW - Underground Econom KW - Trade and Labor Market Interactions KW - Open Economy Macroeconomics KW - Labor Economics Policies KW - Demand and Supply of Labor: General KW - Wages, Compensation, and Labor Costs: General KW - Unemployment: Models, Duration, Incidence, and Job Search KW - General Financial Markets: General (includes Measurement and Data) KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Labour KW - income economics KW - Finance KW - Financial crises KW - Economic sectors KW - Labor markets KW - Wages KW - Unemployment KW - Commodity markets KW - Financial markets KW - Labor costs KW - Currency crises KW - Informal sector KW - Economics KW - Commodity exchanges KW - India KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:85502504 AB - This paper investigates the implications of lowering formal regulations in labor and product markets on informality and macroeconomic outcomes in India. We estimate a DSGE model with an informal sector, and rigidities in the formal labor and product markets. Along with increasing GDP and employment, deregulation also leads to lower informality and greater product market competition. Slow reallocation of resources between the formal and informal sectors leads to some adverse impacts in the short run that can be minimized by implementing a combined package of reforms. These impacts are shown to be greater in an economy with a larger informal sector. ER -