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Intergenerational Persistence of Industry in India

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  • Tushar K Nandi

    (CTRPFP, Centre for Studies in Social Sciences, Calcutta.)

Abstract

This article studies the intergenerational persistence of industry in India. Using data from a nationally representative sample, we find that 62 per cent of young Indian men are employed in the same industry as their fathers. A set of simulations that assign young men randomly across industries is run to study the persistence in a counter-factual population. We use a probit model to estimate the effect of education, productive asset ownership and father’s network on intergenerational persistence. Higher education is found to be associated with lower persistence. Ownership of productive assets exerts a significant non-linear effect on intergenerational transmission of industry. We also find substantial evidence of the influence of father’s network and assortative matching in parents’ generation on son’s choice of industry.

Suggested Citation

  • Tushar K Nandi, 2016. "Intergenerational Persistence of Industry in India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(3), pages 495-511, July.
    • Handle: RePEc:pal:eurjdr:v:28:y:2016:i:3:p:495-511
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