What is the differnce between formal sector and informal sector?
Formal Sector : All the public sector establishments and those private sector establishments, which employ 10 hired workers or more are called as formal sector establishments and the workers working in these establishments are called formal sector workers.
Informal Sector : All the other enterprises and workers who do not work in formal sector are called informal sector workers. The informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and working in those enterprises and self-employed who do not have any hired workers.