What Determines Employability In India?

The present paper tries to investigate the relevant household level determinants of employment and unemployment situation in India with special reference to North East states of India. For the analysis, Multinomial Logit model is estimated by using latest NSS unit level data on ‘Employment and unemployment’ in 2011-12.The estimated results show that higher amount of land holding increases the probability of becoming self employed persons. But it decreases the probability of becoming casual labourer of the rural worker. Rural females have the lowest probability of becoming wage/salaried worker. It finds that higher level of education (technical and general) reduces the probability of becoming casual worker/ self employed and increases the chance of becoming wage/salaried worker. Finally, the paper suggests that government needs to consider various household level factors such as age, marital status, religion groups, social groups, and education level for updating and formulating employment enhancement policies. Further, it urges that macro level policies need to be strengthened by emphasizing on micro level policies, giving due consideration to the development status (backward states/ region, e.g. North East states) for increasing employment opportunities. Emphasis also needs to be laid on level of investment, educational level, social benefits and security of the worker for a healthy and quality employment.