Inequality of Opportunity in Changing Access to Employment in India: A Panel Study

Shreshti Rawat ()
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Shreshti Rawat: Indira Gandhi Institute of Development Research

The Indian Journal of Labour Economics, 2023, vol. 66, issue 3, No 5, 739-764

Abstract: Abstract Labour market segmentation on the lines of caste, religion, gender, and parental characteristics is well documented in the literature. Evidence suggests that these factors affect an individual’s ability to access formal employment. Such factors are beyond an individual's control, and inequality in outcomes accruing to them has been conceptualised as inequality of opportunity. This analysis uses the Human Opportunity Index (HOI) framework to examine the inequality of opportunity in accessing formal employment opportunities using the India Human Development Survey (IHDS) panel. Further, it identifies the circumstances that explain the mobility of individuals from informal employment to formal employment using Dominance Analysis (DA). It is observed that there is low coverage of formal employment opportunities along with high inequality in access due to circumstances of the individuals. Region of residence, highest male and highest female education in the household are pertinent circumstances that contribute to inequality of opportunity in access to formal employment. Further, these circumstances have been identified as strong determinants of an individual’s ability to move from informal to formal employment.

Keywords: Labour market segmentation; Inequality of opportunity; Formal employment; Access inequality (search for similar items in EconPapers)
JEL-codes: D63 J42 O17 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s41027-023-00453-6

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