Abstract
We examine the labour market vulnerability faced by Indian youth using high-frequency panel data from the Consumer Pyramid Households Survey conducted by CMIE. Our analysis demonstrates that youth are severely vulnerable to frequent job loss, leading them to become unemployed or leave the labour market. Even if they remain employed, they are susceptible to downward mobility in job quality. Using multinomial logit regression, we examine the impact of several socioeconomic and demographic characteristics that may impact young people’s labour market vulnerability and, in turn, their earning potential and household well-being. Empirical findings suggest widespread prevalence of labour market vulnerability among Indian youth. However, there is a considerable heterogeneity in it, with youth from rural backgrounds, females, and those from lower socioeconomic strata being more exposed to income and employment vulnerability. Additionally, young people with lower education who joined the workforce at an early age are more likely to hold precarious jobs and earn lower wages. Similarly, youth from large households with many dependents and less education are more vulnerable in the job market. Our observations underscore the need for policies to enhance labour market opportunities for the youth and reduce their vulnerability to job loss and downward income and employment mobility.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Source Report of the Technical Group on Population Projections, 2020, Ministry of Health and Family Welfare, Government of India.
References
Aiyar, M. S., & Mody, M. A. (2011). The demographic dividend: Evidence from the Indian states. International Monetary Fund.
Bălan, M. (2014). Youth labor market vulnerabilities: Characteristics, dimensions and costs. Procedia Economics and Finance, 8, 66–72.
Chakravorty, B., & Bedi, A. S. (2019). Skills training and employment outcomes in rural Bihar. The Indian Journal of Labour Economics, 62(2), 173–199.
Chandrasekhar, C. P., Ghosh, J., & Roychowdhury, A. (2006). The ‘Demographic Dividend’ and Young India’s economic future. Economic and Political Weekly, 41(49), 5055–5064.
Dev, S. M., & Venkatanarayana, M. (2011). Youth employment and unemployment in India. Mumbai: Indira Gandhi Institute of Development Research.
Dev, S. M. (2013). Post-2015 Development agenda: Employment and growth with special reference to India. IDS Bulletin, 44(5–6), 63–71.
Ghose, A. K. (2021). Structural change and development in India. Indian Journal of Human Development, 15(1), 7–29.
Jafrin, N., Mahi, M., Masud, M. M., & Ghosh, D. (2021). Demographic dividend and economic growth in emerging economies: Fresh evidence from the SAARC countries. International Journal of Social Economics, 48(8), 1159–1174.
Long, J. S. (1997). Regression model for categorical and limited dependent variables. Sage Advanced Quantitative Techniques in the Social Sciences Series.
Majid, N. (2021). Young persons not in employment and education (NEET) in India: 2000–2019. International Labor Organization Research Brief, March (March 2020).
Mamgain, R. P., & Tiwari, S. (2016). Youth in India: Challenges of employment and inclusion. Journal of Social and Economic Development, 18(1–2), 85–100.
Mehrotra, S., Gandhi, A., & Sahoo, B. K. (2013). Estimating India’s skill gap: On a realistic basis for 2022. Economic and Political Weekly, 102–111.
Mitra, A., & Verick, S. (2013). Youth employment and unemployment: An Indian perspective. New Delhi: ILO.
O’Higgins, N. (2003). Trends in the youth labour market in developing and transition countries. World Bank Social Protection Discussion Paper Series, 0321.
Pieters, J. (2013). Youth employment in developing countries. IZA Research Report Series, 58.
Sharma, A. N. (2022). Youth employment and unemployment in India: Issues and challenges. The Indian Journal of Labour Economics, 65(2), 237–267.
Visaria, P. (1998). Unemployment among Youth in India: Level, nature and policy implications, employment and training paper 36, employment and training department. International Labour Organisation.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
See Figs. A.1, A.2, A.3, A.4, A.5 and A.6.
Labour force participation across age cohorts and gender
Unemployment rate by age cohorts and gender
Labour force participation and unemployment rate by years of education
Share of NEET youth in population by age cohort and gender
Employment to unemployment and out of labour force transition
Employment arrangement by education level of youth
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Kumari, G., Gupta, N., Narayanan, K. (2024). Employment Vulnerability Among Young Indian Workers. In: Mitra, A. (eds) Youth in Indian Labour Market. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-97-0379-1_5
Download citation
DOI: https://doi.org/10.1007/978-981-97-0379-1_5
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-97-0378-4
Online ISBN: 978-981-97-0379-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)