Intragenerational labor mobility in the Indian labor market

Neog, Bhaskar Jyoti; Sahoo, Bimal Kishore

Intragenerational labor mobility in the Indian labor market

IZA Journal of Development and Migration

Volume 11 (2020): Issue 1 (January 2020)

By:

Bhaskar Jyoti Neog and Bimal Kishore Sahoo

Open Access

|Apr 2020

Figures & Tables

Mobility and earnings change

	Terminal sector
Initial sector	OAW	Employer	Casual worker	Regular worker
OAW	14.48	47.89	–16.29	3.02
Employer	–5.03	22.90	–85.63	–12.68
Casual worker	52.13	71.88	33.30	34.17
Regular worker	7.57	61.07	22.40	22.40

Mobility and individual characteristics

Status ofdeparture	Status of destination
Status ofdeparture	Farmworker	OAW	Employer	Casualworker	Regularworker	Unpaidfamilyworker	UNLF andStudent
Students, unemployed, and not in the labor force
Urban^a	0.14***	1.08	1.03	0.84*	1.44***	0.79***
Age	1.00**	1.01	0.99**	1.01	0.99*	0.99*
Years ofeducation	1.14***	1.23***	1.32***	1.22***	1.39***	1.14***
Speaks English^b	0.81**	0.73**	0.59**	0.9	1.11	0.79
Education offather ofhousehold head	0.97***	0.93***	0.93***	0.92***	0.96***	0.95***
Gender^c	1.33***	6.75***	19.72***	3.21***	3.98***	2.14***
Dummy for caste affiliation (Base: General category)
Other backwardcastes	1.12	1.37**	0.99	1.37***	1.14	1.32***
SC/ST	0.97	0.92	0.89	2.03***	1.73***	0.97
Religion^d	1.06	0.83*	0.75	0.62***	0.92	0.83*
Marital status^e	2.17***	4.80***	6.39***	3.19***	1.77***	1.43***
Assets	0.93***	0.93***	1.06***	0.84***	0.93***	0.99
Member ofemployeeunion/businessgroup^f	0.80**	0.91	0.85	1.38	1.17	0.94
Member of SHG^f	1.05	0.91	0.35**	0.98	1.1	0.57**
Member ofsavings group^f	0.96	1.17	0.96	1.01	0.82	1.02
Dependencyratio	0.19***	0.13***	0.11***	0.05***	0.12***	0.08***
Occupational group of the father of the household head (Base: Farmers, service workers, and production workers)
Professionaland executiveworkers	0.84	2.01***	1.15	1.27	1.45***	1.74***
Sales workers	0.52***	2.48***	2.09***	1.02	0.9	3.09***
Clerical, service,and productionworkers	0.59***	1.76***	1.23	1.27***	1.35**	1.89***

Fixed-effects regression coefficients of the interaction between sectoral choice and caste

Fixed-effects regressioncoefficients	Column 1	Column 2	Column 3	Column 4
	Reference categories
	OAW	Employer	Casual worker	Regular worker
OAW*Dummy for SC/ST		10.82**	–2.48	–1.25
Employer* Dummy for SC/ST	–10.82**		–13.30***	–12.07***
Casual worker* Dummy for SC/ST	2.48	13.30***		1.23
Regular worker* Dummy for SC/ST	1.25	12.07***	–1.23

Multinomial confidence intervals for the transition probabilities

	Terminal sector
Initial sector	Farmworker	OAW	Employer	Casual worker	Regular worker	Unpaid family worker	Student	UNLF
Farmworker	57.29-57.30	2.10-2.11	0.47-0.48	19.47-19.48	2.10-2.11	1.22-1.23	1.83-1.84	15.44-15.45
OAW	14.62-14.67	27.34-27.39	6.35-6.40	25.71-25.76	5.21-5.25	6.72-6.77	0.17-0.22	13.69-13.73
Employer	10.83-10.92	26.28-26.36	20.80-20.88	15.95-16.04	8.31-8.39	7.10-7.18	0.07-0.15	10.33-10.41
Casual worker	17.36-17.37	4.41-4.42	0.84-0.85	58.07-58.08	8.08-8.09	1.09-1.10	0.15-0.16	9.91-9.92
Regular worker	6.77-6.81	3.51-3.55	1.42-1.47	20.61-20.65	52.14-52.18	0.68-0.73	0.03-0.07	14.67-14.71
Unpaid family worker	11.60-11.66	16.62-16.68	4.91-4.97	19.11-19.17	4.32-4.38	19.84-19.90	2.31-2.38	21.04-21.10
Student	22.70-22.71	0.81-0.82	0.28-0.29	11.91-11.92	2.92-2.93	2.71-2.72	49.89-49.90	8.71-8.72
UNLF	17.15-17.16	1.73-1.74	0.46-0.47	10.63-10.64	2.61-2.62	1.71-1.72	31.52-31.53	34.12-34.13

Fixed-effects regression coefficients for the interaction between sectoral choice and age

Fixed-effects regressioncoefficients	Column 1	Column 2	Column 3	Column 4
	Reference categories
	OAW	Employer	Casual worker	Regular worker
OAW*Age		–0.38	0.15	–0.13
Employer*Age	0.38		0.53	0.25
Casual worker*Age	–0.15	–0.53		–0.28***
Regular worker*Age	0.13	–0.25	0.28***

Fixed-effects regression coefficients for the interaction between sectoral choice and education

Fixed-effects regressioncoefficients	Column 1	Column 2	Column 3	Column 4
	Reference categories
	OAW	Employer	Casual worker	Regular worker
OAW*Years of education		–1.41*	0.50*	–0.02
Employer*Years of education	1.41*		1.91**	1.39
Casual worker*Years of education	–0.50*	–1.91**		–0.51***
Regular worker*Years of education	0.02	–1.39	0.51***

Descriptive statistics

	Farmworker	OAW	Employer	Casual worker	Regular worker	Unpaid family worker	Student	UNLF
Urban Values indicate proportionate shares of the variable among the total population of the different groups.	0.05	0.40	0.54	0.21	0.55	0.44	0.30	0.35
Age	36.97	41.05	40.95	36.84	40.23	32.75	11.22	32.55
Years of education	4.63	6.93	9.27	4.29	9.93	7.07	5.06	3.84
Male Values indicate proportionate shares of the variable among the total population of the different groups.	0.47	0.84	0.94	0.69	0.81	0.61	0.54	0.31

Caste groups Values indicate proportionate shares of the variable among the total population of the different groups.	(column totals for all caste groups sum up to 1.0)
General	0.28	0.32	0.47	0.17	0.38	0.34	0.29	0.31
OBC	0.46	0.48	0.42	0.39	0.35	0.50	0.42	0.43
SC/ST	0.26	0.20	0.11	0.44	0.27	0.17	0.29	0.26
Hindu Values indicate proportionate shares of the variable among the total population of the different groups.	0.86	0.79	0.77	0.84	0.82	0.77	0.81	0.79
Married Values indicate proportionate shares of the variable among the total population of the different groups.	0.74	0.89	0.90	0.82	0.85	0.61	0.01	0.62
Household poor Values indicate proportionate shares of the variable among the total population of the different groups. , The poverty rates are calculated using per capita household consumption and the official poverty lines (Tendulkar Committee poverty lines) (Planning Commission, 2009). Estimated results are calculated using sampling weights (2004-2005). Figures shown are the mean values of the variables, unless otherwise mentioned.	0.26	0.20	0.07	0.36	0.10	0.18	0.31	0.33
Monthly per capita householdreal income	735.03	1002.44	2295.59	717.36	2158.56	1127.21	851.91	941.65

Assets	11.51	14.53	18.55	10.49	17.89	15.87	13.16	13.26
Mean real earnings per hour(standard deviation)	187.36	628.94	129.70	9.49	26.16
Annual number of hours worked	729.60	2104.67	2328.13	1529.99	2472.93	1163.93

Observations
Total	67928	9202	2964	58498	14225	5787	64867	77895
2004-2005	30037	3987	1311	26437	5245	2293	33126	48247
2011-2012	37891	5215	1653	32061	8980	3494	31741	29648

Transition probabilities (T-matrix)

Initial sector	Terminal sector
Initial sector	Farmworker	OAW	Employer	Casualworker	Regularworker	Unpaidfamilyworker	Student	UNLF
Farmwork		0.76	0.58	1.53	0.53	0.61	0.16	1.75
OAW	0.71		5.95	1.55	1.00	2.56	0.01	1.19
Employer	0.50	6.92		0.91	1.52	2.58	0.01	0.86
Casual worker	1.20	1.74	1.13		2.20	0.60	0.02	1.23
Regular worker	0.49	1.45	2.00	1.84		0.40	0.00	1.90
Unpaid family worker	0.52	4.24	4.23	1.06	0.76		0.14	1.68
Student	1.35	0.28	0.33	0.88	0.68	1.26		0.93
UNLF	0.82	0.47	0.43	0.63	0.49	0.64	2.07

Fixed-effects regression results

Fixed-effects regressioncoefficients	Column 1	Column 2	Column 3	Column 4
	Reference categories
	OAW	Employer	Casual worker	Regular worker
OAW		–12.43***	5.78***	3.63*
Employer	12.43***		18.21***	16.06***
Casual worker	–5.78***	–18.21***		–2.15**
Regular worker	–3.63*	–16.06***	2.15**

Mobility and poverty

Status ofdeparture	Status of destination
Status ofdeparture	Farmworker	OAW	Employer	Casualworker	Regularworker	Unpaidfamilyworker	UNLF andstudent
Farmworker
Householdpoor (2005)	0.33	0.30	0.13	0.46	0.26	0.33	0.31
Householdpoor (2011)	0.17	0.16	0.02	0.31	0.13	0.13	0.22

OAW
Householdpoor (2005)	0.29	0.28	0.17	0.34	0.17	0.23	0.27
Householdpoor (2011)	0.19	0.13	0.04	0.21	0.09	0.11	0.17

Employer
Householdpoor (2005)	0.17	0.11	0.09	0.14	0.11	0.08	0.11
Householdpoor (2011)	0.16	0.08	0.04	0.18	0.09	0.10	0.08

Casual worker
Householdpoor (2005)	0.53	0.45	0.31	0.49	0.29	0.48	0.40
Householdpoor (2011)	0.26	0.14	0.04	0.28	0.11	0.20	0.22

Regular worker
Householdpoor (2005)	0.25	0.13	0.10	0.25	0.09	0.14	0.10
Householdpoor (2011)	0.11	0.05	0	0.16	0.04	0.06	0.07

Unpaid family worker
Householdpoor (2005)	0.39	0.24	0.19	0.35	0.26	0.16	0.23
Householdpoor (2011)	0.23	0.14	0.12	0.23	0.15	0.15	0.19

Students, Unemployed, and Not in the Labor Force
Householdpoor (2005)	0.47	0.33	0.13	0.50	0.24	0.36	0.37
Householdpoor (2011)	0.21	0.15	0.04	0.23	0.08	0.12	0.20

Multiple jobholdings among movers between farm and casual work

	Farmwork to casual work		Casual work to farmwork
	2004-2005	2011-2012	2004-2005	2011-2012
Single job	76.14	29.17	30.97	61.42
F and S	1.55			1.56
F and W	21.33	68.79	65.55	36.10
S and W		0.43	0.89
F, S and W	0.98	1.61	2.58	0.92

Persistence in labor market status and individual characteristics

	Farmworker	OAW	Employer	Casualworker	Regularworker	Unpaidfamilyworker	UNLFandstudent
Urban^a	0.47***	1.25	0.86	1.1	1.14	1.48	2.15***
Age	0.99*	0.99	0.99	0.96***	0.94***	0.98**	1.01
Years of education	1.01	1.02	1.08**	0.94***	1.07***	1.01	0.84***
Speaks English^b	0.88	0.99	1.45	0.79***	1.18*	0.81	1.05
Education of father of householdhead	1.02**	0.99	0.97*	0.98*	0.99	0.99	1.05***
Gender^c	0.99	2.70***	4.12	2.41***	1.30*	0.81	0.50***

Dummy for caste affiliation (Base: General category)
Other backwardcastes	0.99	1.19	0.91	1.27***	1.11	1.22	0.84***
SC/ST	0.68***	1.06	0.27***	1.66***	1.65***	0.57	0.80***
Religion^d	0.99	0.87	0.66**	0.87	1.29**	0.89	1.12*
Marital status^e	2.64***	2.07***	2.80***	1.64***	3.16***	0.85	0.47***
Assets	1.02**	1.02*	1.06	0.92***	1.05***	1.08***	1.10***
Member of employee union/business group^f	0.9	0.88	0.69	0.87*	1.52**	0.93	0.96
Member of SHG^f	0.92	0.89	1.34	1.22**	0.76*	0.89	1.03
Member of savingsgroup^f	0.99	0.93	1.49	1.05	0.76**	0.52***	1.03
Dependency ratio	0.48***	0.85	0.93	0.70**	0.39***	0.55	7.12***

Occupational group of the father of the household head (Base: Farmers, service workers, and production workers)
Professional andexecutive workers	0.79*	0.81	2.48***	1.12	1.41***	1.31	0.96
Sales workers	0.50***	1.29	1.71***	0.83	0.83	1.51***	1.09
Clerical, serviceand productionworkers	0.67***	1.01	2.10***	1.28***	1.03	1.39*	1.11*

Transition probabilities (V-matrix)

Initial sector	Terminal sector
Initial sector	Farmworker	OAW	Employer	Casualworker	Regularworker	Unpaidfamilyworker	Student	UNLF
Farmwork		2.09	1.55	4.87	1.99	1.69	0.41	2.91
OAW	1.81		12.19	3.78	2.90	5.44	0.02	1.52
Employer	1.23	14.07		2.16	4.25	5.28	0.01	1.05
Casual worker	3.72	4.46	2.82		7.77	1.54	0.04	1.90
Regular worker	1.28	3.12	4.20	4.60		0.86	0.01	2.47
Unpaid family worker	1.30	8.79	8.56	2.55	2.19		0.28	2.11
Student	4.07	0.69	0.80	2.54	2.36	3.18		1.40
UNLF	2.34	1.12	0.98	1.72	1.60	1.53	4.51

Transition probabilities (P-matrix)

Initial sector	Terminal sector
Initial sector	Farmworker	OAW	Employer	Casualworker	Regularworker	Unpaidfamilyworker	Student	UNLF
Farmworker	57.30	2.11	0.48	19.48	2.11	1.23	1.84	15.45
OAW	14.65	27.36	6.37	25.74	5.23	6.75	0.19	13.71
Employer	10.87	26.32	20.84	15.99	8.35	7.14	0.11	10.37
Casual worker	17.37	4.42	0.85	58.08	8.09	1.10	0.16	9.92
Regular worker	6.79	3.53	1.45	20.63	52.16	0.70	0.05	14.69
Unpaid family worker	11.63	16.65	4.94	19.14	4.35	19.87	2.35	21.07
Student	22.71	0.82	0.29	11.92	2.93	2.72	49.90	8.72
UNLF	17.16	1.74	0.47	10.64	2.62	1.72	31.53	34.13

Multiple jobholdings across sectorsTable shows the share of workers employed across various multiple-jobholding groups for each sector_

	Single job	F and S F, S, and W denote Farmwork, Self-employment, and Wage employment, respectively.	F and W F, S, and W denote Farmwork, Self-employment, and Wage employment, respectively.	S and W F, S, and W denote Farmwork, Self-employment, and Wage employment, respectively.	FSW F, S, and W denote Farmwork, Self-employment, and Wage employment, respectively.
2004–2005
Farmworker	87.19	1.56	10.83		0.42
Own-account worker	65.76	26.37		4.11	3.76
Employer	76.84	20.28		1.93	0.95
Casual worker	60.11		37.40	1.12	1.36
Regular worker	81.07		17.38	1.11	0.44
Unpaid family worker	77.98	19.33		1.64	1.05

2011–2012
Farmworker	85.46	1.57	12.61		0.37
Own-account worker	66.77	23.40		4.61	5.22
Employer	77.59	18.19		1.79	2.43
Casual worker	56.83		41.06	1.11	1.00
Regular worker	80.91		17.32	1.12	0.65
Unpaid family worker	73.68		21.82	1.46	3.03

Fixed-effects regression coefficients of the interaction between sectoral choice and gender

Fixed-effects regressioncoefficients	Column 1	Column 2	Column 3	Column 4
	Reference categories
	OAW	Employer	Casual worker	Regular worker
OAW*Dummy for male		18.60	0.88	–1.31
Employer* Dummy for male	–18.60		–17.71	–19.91
Casual worker* Dummy for male	–0.88	17.71		–2.20**
Regular worker* Dummy for male	1.31	19.91	2.20**