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Intergenerational Persistence of Industry of Employment in India

Author

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  • Nandi, Tushar K.

Abstract

This paper studies the intergenerational persistence of industry in India. Using data from a nationally representative sample, we find that 62% young Indian men are employed in the same industry where their fathers are also employed. A set of simulations that assign young men randomly across industries is run to study the persistence in counterfactual population. We use a probit model to estimate the effect of education, and a set of family background variables on intergenerational persistence. Higher education is found to be associated with lower persistence. Ownership of productive assets exerts important non-linear effect on intergenerational transmission of industry. We also find substantial evidence of influence of father’s network and assortative mating on son’s choice of industry.

Suggested Citation

  • Nandi, Tushar K., 2013. "Intergenerational Persistence of Industry of Employment in India," MPRA Paper 51281, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:51281
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    File URL: https://mpra.ub.uni-muenchen.de/51281/1/WP-2013-04.pdf
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    References listed on IDEAS

    as
    1. Miles Corak & Patrizio Piraino, 2011. "The Intergenerational Transmission of Employers," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 37-68, January.
    2. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
    3. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
    4. Dahan, Momi & Gaviria, Alejandro, 2001. "Sibling Correlations and Intergenerational Mobility in Latin America," Economic Development and Cultural Change, University of Chicago Press, vol. 49(3), pages 537-554, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nandi, Tushar Kanti & Kar, Saibal, 2015. "Short-term Migration and Intergenerational Persistence of Industry in Rural India," IZA Discussion Papers 9283, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Intergenerational persistence; Employment; Education; India;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J0 - Labor and Demographic Economics - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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