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Intergenerational Persistence of Industry of Employment in India

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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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    References listed on IDEAS

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    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. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
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    4. World Bank, 2011. "Poverty and Social Exclusion in India," World Bank Publications - Books, The World Bank Group, number 2289.
    5. Angus Deaton and Jean Drèze & Jean Drèze, 2002. "Poverty and Inequality in India: A Reexamination," Working papers 107, Centre for Development Economics, Delhi School of Economics.
    6. Rajarshi Majumder, 2013. "Intergenerational Mobility," SpringerBriefs in Economics, Springer, edition 127, number 978-81-322-1130-3, June.
    7. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
    8. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
    9. Majumder, Rajarshi, 2010. "Intergenerational mobility in educational & occupational attainment: a comparative study of social classes in India," MPRA Paper 40939, University Library of Munich, Germany.
    10. repec:pri:rpdevs:deaton_dreze_poverty_india is not listed on IDEAS
    11. 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.
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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 of Labor Economics (IZA).

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    More about this item

    Keywords

    Intergenerational persistence; Employment; Education; India;
    All these keywords.

    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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