Consumption Nature of Indian Informal Workers: Engel’s Law Revisited

The level of informal employment in the Indian labor market shows importance investigating nature consumption among workers and determining budget share them. Working-Leser model is used to identify necessary luxury goods workers. food non-food items them will help us validate Engel’s law. Informal are divided into three categories: self-employed workers, employees sector, formal sector. Using 68th round National Sample Survey data on Employment Unemployment for 2011–2012, we find items, addictive (e.g., alcohol tobacco products), entertainment fuel, lights, other necessary, while health, education, jewellery personal transport all types India. law therefore validated policy recommendation that government needs spend more health education Spending these would not only improve skills efficiency but also reduce their vulnerability.