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1. Regressive income shocks during COVID‑9: Evidence from India

Author:
Amit Basole, Anand Shrivastava, Jay Kulkarni, and Akshit Arora
Publication Date:
08-2024
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Studies based on the Consumer Pyramids Household Survey (CPHS) in India have shown that the impact of the Covid-19 lockdown on household incomes was progressive in nature - richer households suffered more. But several media reports as well as purposive surveys carried out during the pandemic suggest that the poor suffered more than the rich. We use nationally representative panel data for urban India from the official Periodic Labour Force Survey (PLFS) to show that households that were relatively richer prior to the start of the pandemic suffered relatively less during the lockdown compared to households that were poorer. That is, the shock was regressive in nature. We also confirm that, as per CPHS, richer households did indeed experience higher drops in income than poorer ones. But we show that this progressivity is much less than what prevailed prior to the pandemic. Thus the pandemic either disrupted ongoing progressive income changes or was outright regressive in its impacts.
Topic:
Employment, COVID-19, Lockdown Policies, and Income Distribution
Political Geography:
South Asia and India

2. Jobless growth and structural transformation: Some theoretical considerations and empirical evidence from India

Author:
Zico Dasgupta and Amit Basole
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
The decoupling of output growth and employment growth, known popularly as “jobless growth” has been a problem plaguing many countries. Using cross-country data, we show that India has underperformed significantly on job creation compared to the average developing country with lower than average employment elasticities at both the aggregate level and for the non-agricultural sector. Strikingly, we find a one-for-one relationship between output growth and productivity growth in India’s non-agricultural sector, i.e. a Kaldor-Verdoorn coefficient of one. Despite this joblessness of growth, the Indian economy has experienced some structural transformation with the share of the non-agricultural sector and the share of regular wage employment rising at the expense of agriculture and self-employment. We develop a theoretical model which clarifies the relative roles of labour demand and labour supply in determining the output-employment relationship. In this model, the Indian case of some structural transformation even with jobless growth emerges as one case among four possible cases (growth with or without jobs / structural change or no structural change). We conclude with some policy implications.
Topic:
Employment, Economic Growth, Gender, Structural Transformation, and Jobless Growth
Political Geography:
South Asia and India

3. Estimating the productivity gap between organised and unorganised small-scale units in India’s manufacturing sector

Author:
Amit Basole, Dimple Chopde, and Paaritosh Nath
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Small manufacturing firms are considered to be engines of growth and job creation. While most research on small firms focuses on formal sector units, in India informal sector units far outnumber the formal. This is true even for manufacturing units employing 5 to 49 workers, which constitute only 5% of all unorganised units, but in absolute numbers are nine times more numerous than organised units in the same size class. Such firms have the potential to contribute to structural transformation but their capacities vis-a-vis formal firms are not well understood. To address this, we create a unit-level dataset combining Annual Survey of Industries data for organised (formal) units with the National Sample Survey data on unorganised (informal) units. We also discuss problems involved in this exercise and some ways to deal with them. We find that matching organised and unorganised units on observable characteristics reduces the labour productivity differences between them to around 25 percent. We discuss some policy implications of our results.
Topic:
Employment, Manufacturing, Productivity, and Informal Economy
Political Geography:
South Asia and India

4. Tracking Employment Trajectories during the Covid-19 Pandemic: Evidence from Indian Panel Data

Author:
Rosa Abraham, Amit Basole, and Surbhi Kesar
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Using the CMIE’s Consumer Pyramids Household Survey, we track a panel of households prior to the lockdown (in December 2019), during the lockdown (in April 2020) and afterwards (in August 2020) to investigate the employment and income effects of the Covid-19 pandemic and its associated containment measures. We identify four distinct employment experiences during the pandemic for those who were in the workforce just prior to the lockdown: no loss of employment (“No effect”), loss of employment followed by recovery (“Recovery”), loss of employment with no recovery (“No recovery”), and a delayed loss of employment (“Delayed job loss”). Overall, 54% of individuals experienced no job loss, while 30% lost work in April but recovered by August. 12% had not recovered employment as of August 2020. We analyse how these trajectories vary across different social and economic characteristics to quantify contractions and recovery in the labour market and the extent to which the vulnerabilities vary across different social groups, employment arrangements, and industries. We find that women were substantially more likely to lose employment as well as less likely to recover employment. Job loss was also more severe for lower castes as compared to intermediate and upper castes and for daily wage workers as compared to regular wage workers. Younger workers were particularly vulnerable to job loss compared to older workers. Having lost employment in April, younger workers were also less likely to recover employment in August. Finally, for those who were employed in both December 2019 and August 2020, we examine the changes in employment arrangements. We find a much greater frequency of transitions from wage employment to self-employment, more than that in the seasonally comparable period last year (Dec 2018 to Aug 2019). Our results call for urgent additional fiscal measures to counteract these effects.
Topic:
Economics, Labor Issues, Employment, Unemployment, Pandemic, Job Creation, and Consumerism
Political Geography:
India

5. Down and Out? The Gendered Impact of the Covid-19 Pandemic on India’s Labour Market

Author:
Rosa Abraham, Amit Basole, and Surbhi Kesar
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
The Covid-19 pandemic has created unprecedented disruptions in labour markets across the world including loss of employment and decline in incomes. Using panel data from India, we investigate the differential impact of the shock on labour market outcomes for male and female workers. We find that, conditional on being in the workforce prior to the pandemic, women were seven times more likely to lose work during the nationwide lockdown, and conditional on losing work, eleven times more likely to not return to work subsequently, compared to men. Using logit regressions on a sample stratified by gender, we find that daily wage and young workers, whether men or women, were more likely to face job loss. Education shielded male workers from job loss, whereas highly educated female workers were more vulnerable to job loss. Marriage had contrasting effects for men and women, with married women less likely to return to work and married men more likely to return to work. Religion and gender intersect to exacerbate the disproportionate impact, with Muslim women more likely to not return to work, unlike Muslim men where we find religion having no significant impact. Finally, for those workers who did return to work, we find that a large share of men in the workforce moved to self-employment or daily wage work, in agriculture, trade or construction. For women, on the other hand, there is limited movement into alternate employment arrangements or industries. This suggests that typical ‘fallback’ options for employment do not exist for women. During such a shock, women are forced to exit the workforce whereas men negotiate across industries and employment arrangements.
Topic:
Economics, Gender Issues, Labor Issues, Women, Employment, and Labor Market
Political Geography:
India

6. Pandemic, informality, and vulnerability: Impact of COVID-19 on livelihoods in India

Author:
Surbhi Kesar, Rosa Abraham, Rahul Lahoti, Paaritosh Nath, and Amit Basole
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
We analyze findings from a large-scale survey of around 5000 respondents across 12 states of India to study the impact of COVID-19 pandemic containment measures (lockdown) on employment, livelihoods, food security and access to relief measures. We find a massive increase in unemployment, an equally dramatic fall in earnings among informal workers, large increases in food insecurity, depletion of savings and patchy coverage of relief measures. Two-thirds of our respondents lost work. The few informal workers who were still employed during the lockdown experienced more than a fifty percent drop in their earnings. Even among regular wage workers, half received either no salary or reduced salary during the lockdown. Almost eighty percent of surveyed households experienced a reduction in their food intake and a similar percentage of urban households did not have enough money to pay next month's rent. We also use a set of logistic regressions to identify how employment loss and food intake varies with individual and householdlevel characteristics. We find that migrants and urban Muslims are significantly worse off with respect to employment and food security. Among employment categories, self-employed workers were more food secure. The Public Distribution System (PDS) system was seen to have the widest reach among social security measures. However, even under PDS, 16 percent of vulnerable urban households did not have access to government rations. Further, half of the respondents reported not receiving any cash transfers (state or central). We conclude that much more is needed in the way of direct fiscal support that has been announced thus far by state and central governments in India.
Topic:
Economics, Labor Issues, Employment, Unemployment, Pandemic, and COVID-19
Political Geography:
India

7. Did Employment Rise or Fall in India between 2011 and 2017? Estimating Absolute Changes in the Workforce

Author:
Amit Basole and Paaritosh Nath
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
The recently released data from the 2017-2018 Periodic Labour Force Survey have created a controversy regarding the quantity of employment generated in the past few years in India. Estimates ranging from an absolute increase of 23 million to an absolute decline of 15.5 million have been published. In this paper we show that some of the variation in estimates can be explained by the way in which populations are projected based on Census 2011 data. We estimate the change in employment using the cohort-component method of population projection. We show that for men total employment rose but the increase fell far short of the increase in working age population. For women, employment fell. The decline is concentrated among women engaged in part-time or occasional work in agriculture and construction.
Topic:
Economics, Labor Issues, Employment, and Workforce
Political Geography:
India

8. Long-Run Performance of the Organised Manufacturing Sector in India: Aggregate Trends and Industry-level Variation

Author:
Amay Narayan and Amit Basole
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Despite its weak performance in terms of job creation in recent years, the organised manufacture sector remains vital to employment policy. This paper investigates the aggregate trends in this sector, in employment, output, labour-capital ratio, as well as wage share and wage rates at the three-digit NIC level over a long period from 1983 to 2016 using the Annual Survey of Industries data. We show that three distinct sub-periods can be identified within the overall period. Further, using shift-share decomposition we show that most of the decline in the L/K ratio can be explained by within industry changes. Finally, we analyse industries with respect to their capacity to deliver job growth as well as wage growth.
Topic:
Economics, Employment, Economic Growth, and Manufacturing
Political Geography:
India