Low Pay Household Estimates in Rural India
Analysis of data from the Periodic Labour Force Survey reveals estimates of households with monthly per capita earnings below a threshold in Rural India. The study, presented by Vasavi Bhatt, focuses on the characteristics of low earnings households and highlights the importance of decent work and income sharing in addressing low pay workers and working poor households. The study also introduces the concept of Monthly Per Capita Household Earnings (MPCHE) and defines a threshold for identifying low earnings households using a regression model on PLFS data.
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Topic : Estimates of Households Characterised by Low Pay in Rural and India : Abstract : We analyze data from the first three rounds of the Periodic Labour Force Survey and provide estimates of households whose monthly per capita household earnings is below a threshold in India Presented By Vasavi Bhatt Assistant Professor Indian Institute of Management, Tiruchirappalli
Indian Stata User Conference November 30, 2023 Mumbai, India Vasavi Bhatt Indian Institute of Management, Tiruchirappalli
Characteristics of Low Earnings Households in Rural and Urban India. 1
In Relation to Literature Decent Work: involves opportunities for work that is productive and delivers a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration ..men - International Labour Organization. Low Pay Workers: Low Pay Workers: Earnings of an individual is below a particular earnings threshold. (Cuesta 2008; Deng and Li 2012; Hwang and Lee 2012; Rani and Belser 2012; Fontes et al.2012; Nightingale 2019). Working Poor (In Work Poverty): Worker living in a poor household. Importance of income sharing. (Cheung and Chou 2016; Sundaram 2017; Barrientos and Unnikrishnan 2018; Maurizio 2018; Levanon and Saburov 2018; Feder and Yu2018).2
Monthly PerCapita Household Earnings (MPCHE) MPCHE = Sum of earnings by all workers in a household/ total number of household members. MPCHE is preferred welfare metric over total household earnings and earnings per worker since it corrects for household size (Datta and Meerman 1980; Lam 1997). 3
Defining Low Earnings Household Low Earnings Threshold = Adjusted world Bank poverty line = $3.2 *PPP *Social Security *30 LowEarningsHouseholdif MPCHE < LowEarningsThreshold 4
Regression Model Household Level Pooled probit regression of households using 3 rounds of PLFS data (2017-18, 2018-19, 2019-20) using probit command in STATA Do not run separate regression for rural and urban areas. Dependent variable: Y= 1 if household is lowearnings 0 otherwise Independent Variables Social, economic and demographic characteristics of the households. 5
Household Level Regression Results Households that are not self-employed, have a larger number of workers, smaller household size, smaller share of dependents, smaller share of female workers or workers available for additional work have a lower probability to have inadequate earnings. The likelihood of being a low earnings household also decreases in districts where more workers are in service sector or do not work in the rural farm sector. 6
