Informal Sector, Networks and Intra‐city Variations in Activities: Findings From Delhi Slums

Based on a micro‐survey of around 800 slum households in Delhi this paper highlights the role of networks in accessing jobs in the urban labor market. Primarily three types of networks have been identified, which operate through kinship bonds, caste and ethnicity bonds, and formal channels like NGOs and employment exchanges. The type of networks used seems to vary across occupations. Based on a multinomial logit model the paper notes that given the differences in the nature of economic activities performed in different parts of the city, factors like networks and the urge to reside near the contact person and the work place make the urban labor market highly segmented. Hence, certain pockets within the city tend to get crowded by the growth of slums, and secondly inter‐spatial variations in terms of activities/occupations make slum population in the city a heterogeneous set, and thus their problems and need vary substantially. Hence, any uniform policy for clusters located in different zones may not be able to tackle effectively the problems of slum dwellers in the city.