Embedded Livelihoods: The Structure of Street Vending Markets in India
Supported by the IGC, the British Academy, and H.E.R. (STICERD)
Street vending provides livelihoods for millions of workers across the developing world, yet the sector remains poorly understood and subject to repeated policy interventions that have largely failed. This paper provides a comprehensive microeconomic profile of street vending markets in Patna, Bihar, using original survey data from 2,922 stationary vendors across 206 marketplaces. We document that vendors are deeply embedded in overlapping social, spatial, and economic structures that make their livelihoods far more organized, and far harder to administratively reshape, than standard policy frameworks assume. Entry into vending and product choice are mediated by family networks; labour is almost entirely household-based; procurement is organized through stable relational ties with suppliers; and vendors cluster in spatially differentiated markets from which they derive substantial agglomeration economies. Pricing is implicitly coordinated through shared wholesale cost anchors, and 99 percent of vendors have never changed their marketplace despite operating without legal tenure and facing regular eviction pressure. The regulatory environment compounds this vulnerability: fewer than 2 percent of vendors are aware of the Street Vendors Act of 2014, which was designed to protect them, and over 40 percent report moderate to high psychological distress. We argue that the concept of embeddedness offers a more accurate framework for understanding this sector than the atomistic agent model implicit in most policy interventions, and that formalization efforts, particularly spatial relocation mandates, will continue to fail until they account for the social, spatial, and economic complementarities that sustain vendor livelihoods.