International Journal of Science, Engineering and TechnologyAuthors: Pappu Lal Shah
Abstract: The informal sector forms the foundation of urban employment in India; however, it is largely characterized by low and uncertain incomes, employment insecurity, and inadequate social protection. This study investigates the economic status and determinants of income among informal sector workers in Indore city, a rapidly expanding urban centre in Madhya Pradesh. The analysis is based on primary survey data collected from 120 informal workers engaged in construction, street vending, domestic work, transport services, and other informal activities. Descriptive statistics are used to examine the demographic and economic profile of workers, while multiple linear regression analysis is employed to assess the impact of education, skill level, work experience, working hours, nature of employment, and gender on monthly income. In addition, one-way ANOVA and independent sample t-tests are applied to analyze income differences across occupational groups and gender. The findings reveal that education, skills, work experience, working hours, and employment type have a statistically significant positive effect on income, whereas gender differences are evident primarily at the bivariate level. Significant income disparities are also observed across informal occupations, underscoring the heterogeneous and segmented nature of urban informal employment. The study concludes that while human capital enhances earnings, reducing income inequality among informal workers requires stronger labour regulation and expanded social security coverage. By providing city-level empirical evidence, the study contributes to the literature on urban informality and offers policy-relevant insights for inclusive urban labour market interventions.
