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VOL. 10, ISSUE 3 (2024)
Labour market dynamics and worker flows in India: Impact of Covid-19
Authors
Sumant Kumar, Rashmi Singh
Abstract
The Covid-19 pandemic has had a significant impact on the labour market
in India, resulting in unprecedented economic downturns and job losses. To
understand the specifics of the labour force, it is necessary to assess the
changes across different groups over time. This paper examines the distinct
effects of the pandemic on various groups of working-age individuals in India,
using data from the Consumer Pyramids Household Survey (CPHS) conducted by the
Center for Monitoring the Indian Economy (CMIE) from November 2016 to January
2022, covering 16 waves. The study analyses labour flows and transition
matrices to demonstrate how Covid-19 related restrictions affected different
categories of individuals in the labour force, such as those who were employed,
out of the labour force, or with data not available. The dataset also allows
for the exploration of various types of heterogeneity, such as the impact of
education levels on employment. The authors found that the impact of the
pandemic on employment was more significant for those with primary or secondary
education than for those with graduate or post-graduate education. The study
also reveals a substantial increase in the category of "Data Not
Available" during the lockdown period, reflecting the migration from urban
to rural areas that occurred during that time. The paper also applies event
analysis using a difference-in-differences approach to estimate the likelihood
of getting a full-time job during the shocks experienced in the economy. The logistic
regression model predicts the logit of the outcome variable from the predictor
variables, and the relationship between the outcome variable and the predictor
variables is nonlinear. The study period is from November 2016 to January 2020,
and the data is quarterly. Overall, this research provides valuable insights
into the impact of the Covid-19 crisis on the Indian labour market and adds to
the existing literature on this topic. The study identifies gaps in the
existing literature and aims to fill them by examining the impact of the
pandemic on different employment categories and conducting event analysis to
estimate the likelihood of getting a full-time job during the shocks
experienced in the economy.
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Pages:6-15
How to cite this article:
Sumant Kumar, Rashmi Singh "Labour market dynamics and worker flows in India: Impact of Covid-19". International Journal of Commerce and Management Research, Vol 10, Issue 3, 2024, Pages 6-15
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