Impact of demonetization on unorganised labour

Abstract

Demonetization is the process of withdrawing a particular form of currency from circulation. It becomes necessary whenever there is a change in the national currency, where the old currency is replaced by a new one. This process involves either introducing new notes or coins or completely replacing the old currency with the new one. Such measures are often carried out to curb activities in the black market. The first demonetization occurred on 12th January 1946, followed by the second on 16th January 1978, and the third on 8th November 2016, during which Rs. 1000 and Rs. 500 currency notes were demonetized, accounting for 86 per cent of the total currency in circulation. This study focuses on the impact of demonetization on the unorganized labor sector. The objectives of the study are to understand the socio- economic conditions of unorganized laborers and to explore their opinions on demonetization. Consequently, this paper concludes by discussing the broad implications of demonetization on the unorganized sector, particularly on its labor force.