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Summary: There has been an increasing “informalization” and “feminization” of the labor force in developing countries over the past few decades. One aspect of these twin phenomena is the growth of subcontracted homework in manufacturing. Homework has a dual and contradictory character: It can be the source of exploitation of workers, but under some conditions, it can foster human development and the emergence of microenterprises and promote local development. This paper draws on surveys carried out in two low-income South Asian countries—India and Pakistan—where homework is widespread. It examines the social protection needs of these women workers, and also argues for public action to promote such work as a possible new labor-intensive growth strategy in developing countries. [Copyright &y& Elsevier]