IDEAS home Printed from
   My bibliography  Save this paper

Transitions between informal and formal jobs in India: Patterns, correlates, and consequences


  • Rajesh Raj Natarajan
  • Simone Schotte
  • Kunal Sen


The Indian labour market is characterized by a high level of informality, with large numbers of workers in poorly paid 'lower-tier' informal jobs, and somewhat better paid 'upper-tier' informal jobs, which do not have the same benefits and security of tenure as formal jobs. We examine the likelihood of individuals moving up from informal jobs to formal jobs (and vice versa) and from lower-tier to upper-tier informal jobs using a longitudinal dataset for India. We find that self-employed workers exhibit relatively more mobility than wage workers.

Suggested Citation

  • Rajesh Raj Natarajan & Simone Schotte & Kunal Sen, 2020. "Transitions between informal and formal jobs in India: Patterns, correlates, and consequences," WIDER Working Paper Series wp-2020-101, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2020-101

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Formal and informal; informal; formal; lower tier; upper tier; work status; India;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp-2020-101. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Siméon Rapin). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.