Determinants of Informal Employment in Jammu and Kashmir, India : A Cross-sectional Analysis

This study examines the determinants of informal employment in Jammu and Kashmir using cross-sectional data from the Periodic Labour Force Survey (2023–24). This article uses four empirical indicators No of workers, no written contract, no social protection and not eligible for paid leave which are used to measure informal employment to estimate the factors influencing informal employment in Jammu and Kashmir. The Jammu and Kashmir region has a history of political conflicts and a distinct geographical location, which make it different from that of other regions. Based on logistic regression model the research identifies that individuals with higher education levels are more likely to be in formal sectors. The analysis reveals that social and demographic factors such as gender disparities, urban rural divide, education levels, vocational training and social group affiliations significantly influence the probabilities of being informal sector in Jammu and Kashmir. Given Jammu and Kashmir's unique socio-political context, our findings indicate that informal employment rates vary depending on the different social and demographic factors. Policies should focus on expanding education, vocational training, and social protection to reduce informality, while addressing gender, rural–urban, and community disparities in Jammu and Kashmir's labour market. Strengthening MSMEs and creating targeted interventions for marginalized groups can accelerate the transition from informal to formal employment.