Wage Employment, Informality, and Social Networks in Indian Labor Market

Abstract

This chapter shows how a majority of available regular employment—generally considered better over other forms of employment, is devoid of any social security and largely contributed by informal enterprises. Among regular salaried workers, the situation of contractual workers on social security entitlements is worrisome. The degree of such informality of employment is comparatively high in low-end occupations. More so, access to regular salaried employment is significantly influenced by the social background of workers. SCs, STs, and Muslims are largely concentrated in informal sector wage employment. The chapter argues how informational asymmetries in urban labor market create unequal labor outcomes in terms of access to employment and income and demonstrates that despite a notable progress in the penetration of information technology in India, social networks still remain critical in providing job information to regular wage employment. Even a large proportion of employers in formal private sector frequently use social networks for job postings. The new forms of job search such as web job portals are largely being used by educated job seekers looking for jobs in the private formal sector. The likelihood of using social networks in job search is comparatively high among low-educated and male job seekers. The chapter concludes that apart from the lack of employment opportunities in general, the quality of employment is a major casualty in the current dispensation of liberal economic policies of last two-and-half decades or so. The share of precarious employment is widespread and tended to increase over the years. This dismal situation on the front of employment though attracted attention of political class in recent times but yet to be translated into reality with a comprehensive time-bound agenda of creation of employment that ensures tenurial security, social security, dignity, and decent earnings to workers.