Intergenerational Persistence of Industry of Employment in India

Nandi, Tushar K. (2013): Intergenerational Persistence of Industry of Employment in India.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Intergenerational persistence, Employment; Education; India
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; J - Labor and Demographic Economics > J0 - General; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

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