Impact of labour attributes and probability of employability in Indian labour market: A sectoral analysis

Abstract

The structural transition of an economy helps the nations to move from primary to secondary and then to tertiary sector for the total output and employment generation. However, the absence of this systematic structural transition could lead the nation into long-term imbalances for employment and output. This is happening with India as its economy has directly moved from primary to tertiary sector for both output and employment generation. The present study helps to identify the main reasons about why India is still stagnating with its sluggish primary sector for employment generation. This will also show the existing pattern of occupational choices for the people of different labour attributes. The study usages the fourth and fifth survey of employment and unemployment conducted by the Labour Bureau in 2012–13 and 2014–15 over 1,087,968 individuals of India. The study applies both multinomial logit model and binary logit model for analysing the employment probabilities of the individuals for working in the primary, secondary, and tertiary sectors. The study finds that location and education are the most important factor affecting the employment choices of the individuals, whereas caste and gender are also important but with moderate impact. The location is found crucial factor for primary and secondary sector occupation, whereas secondary sector is neutral in this regard. The service sector is found to have the highest incidences of caste discrimination and favouritism in the labour market. The education has the highest impact on the service sector jobs. © 2019 John Wiley & Sons, Ltd.