  This article examines the intertwining relationship between informality and
education-occupation mismatch and the consequent impact on wages. In
particular, we discuss two issues: first, the relative importance of
informality and education-occupation mismatch in determining wages, and second,
the relevance of EOM for formal and informal workers. The analysis reveals that
although both informality and EOM are significant determinants of wages, the
former is more crucial for a developing country like India. Further, we find
that EOM is one of the crucial determinants of wages for formal workers, but it
is not critical for informal workers. The study highlights the need for
considering the bifurcation of formal-informal workers to understand the
complete dynamics of EOM, especially for developing countries where informality
is predominant.
