Life in India’s urban shadows: What shapes the earnings of informal workers?

In towns and cities across Odisha, millions stitch clothes, sell on streets, and drive rickshaws without formal job contracts. Their daily income depends on more than just hard work—where they came from, how long they’ve stayed, and the kind of labor they do all play a part. A closer look shows that migrants often start with lower wages because they lack local connections and knowledge. Over time, some see their earnings climb as they build networks. Yet others remain stuck in cycles of low pay due to lack of education or access to better opportunities.The type of work matters just as much. Construction laborers might earn daily wages that fluctuate with weather and demand, while street vendors rely on foot traffic and unpredictable sales. Even within the same city, two workers doing similar jobs can have very different incomes based on their background and mobility. Women in this sector face extra challenges, balancing unpaid care work with informal jobs that offer little stability. Migration adds another layer of complexity. Workers who move from villages to cities often accept tougher conditions for the chance of higher pay. But without proper documentation or skills, many end up in jobs that pay barely enough to survive. Their earnings aren’t just numbers—they reflect broader gaps in policy, education, and urban planning.