Skill Formation and Informal Employment in Bangalore Slums: An Empirical Study

Skill formation is increasingly recognised as an important factor influencing employment opportunities and livelihood outcomes among the urban poor. In Bangalore, a large section of slum residents depends on informal work, including domestic work, construction and manual labour, street-based activities and small self-employment. This paper examines the relationship between skill formation and informal work among residents of Bangalore slums using published secondary microdata and empirical research. The study draws primarily on two major datasets: a survey of 1,107 households across 36 Bangalore slums and a two-round survey covering 1,482 informal workers residing in declared slums of Bangalore. The analysis examines the nature of informal employment, income vulnerability, occupational characteristics and the role of technical, language, digital, personal and social skills. The findings show that informal employment remains the principal source of livelihood for a substantial majority of slum workers. At the same time, informal workers possess a diverse set of skills that are often acquired through work experience, social interaction and informal learning rather than through formal training institutions. English proficiency and computer literacy are associated with better labour-market outcomes, while personal and social skills also play an important role in determining wage levels and wage stability. The study concludes that skill development programmes for the urban poor should move beyond short-duration occupational training and adopt a broader approach that combines technical skills with communication, digital, language, financial and entrepreneurial capabilities. The paper recommends stronger integration between skill formation, urban livelihood programmes, placement support and social protection.