Barriers to Employment at the Individual Level

Based on various rounds of the periodic labour force surveys, this chapter reflects on some of the disadvantages envisaged in terms of poor educational attainments and caste background. With six configurations, namely informal casual, informal self-employed, informal regular, formal casual, formal self-employed and formal regular, the heterogeneity in the labour market is captured. The informal regular wage employment is highly negligible; hence, other than the casual employment overlapping between the formal and the informal sectors both, the informal self-employment, formal self-employment and the formal regular wage/salary employment are three more distinct categories. Finally, it estimates the occupational choice function and wage function in relation to some of the key variables like education and caste. The rural–urban spatial variations in occupational choices and the wage rates are significant. Those who are able to migrate to the urban spaces would naturally be better off compared to the rural residents. The barriers to migration, therefore, impinge on the labour market outcomes and the wages the workers earn. The caste factor also has an association with the occupational categories and the remunerations associated with them. The key to upward mobility can be envisaged in terms of better human capital formation. Educational and skill upgradation programmes and the policies which encourage participation and retention at secondary and tertiary levels of education including the diploma programmes must receive the priority.