The geography of segmentation of informal labor markets: The case of motorvehicle repair in Calcutta

Although the informal sector has been the subject of enormous academic inte rest since the mid-1970s, one topic that has received relatively little sch olarly attention is the spatial dynamics of informal sector activities and their labor markets. Our study examines the processes giving rise to the sp atial segmentation of informal labor markets using a case study of motor ve hicle repair workers in two areas of Calcutta. Our findings indicate that l ocation within the metropolitan area has a major influence on the demand an d supply of labor as well as remuneration. Labor market contrasts between t he order, congested parts of the city and the urban periphery in turn influ ence the scale and form of the organization of work. Second, spatial segmen tation is reinforced through place-based interactions between employers and employees. Third, a young labor force socialized in rural and semirural ar eas forms a low-earning segment of the metropolitan labor market.