Question
Differentiate between formal workers and informal workers.
Solution
Difference between formal workers and informal workers:
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Formal Workers |
Informal Workers |
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1. They work in organised sector of the economy. |
1. They work in unorganised sector of the economy. |
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2. They can form trade unions. |
2. They cannot form trade unions. |
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3. They are protected by various labour laws. |
3. The are not protected by laws and are therefore highly volnerable to uncertainities of the market. |
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4. They are entitled to social security benefits. |
4. They are not entitled to social security benefits. |
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5. They are like regular workers. |
5. They are like daily wage workers. |
