Low Pay Household Estimates in Rural India
Presented By
Indian Institute of Management, Tiruchirappalli
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
Vasavi Bhatt
Assistant Professor
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
•
D
e
c
e
n
t
W
o
r
k
:
“
i
n
v
o
l
v
e
s
o
p
p
o
r
t
u
n
i
t
i
e
s
f
o
r
w
o
r
k
t
h
a
t
i
s
p
r
o
d
u
c
t
i
v
e
a
n
d
d
e
l
i
v
e
r
s
a
f
a
i
r
i
n
c
o
m
e
,
s
e
c
u
r
i
t
y
i
n
t
h
e
w
o
r
k
p
l
a
c
e
a
n
d
s
o
c
i
a
l
p
r
o
t
e
c
t
i
o
n
f
o
r
f
a
m
i
l
i
e
s
,
b
e
t
t
e
r
p
r
o
s
p
e
c
t
s
f
o
r
p
e
r
s
o
n
a
l
d
e
v
e
l
o
p
m
e
n
t
a
n
d
s
o
c
i
a
l
i
n
t
e
g
r
a
t
i
o
n
…
.
.
m
e
n
”
-
I
n
t
e
r
n
a
t
i
o
n
a
l
L
a
b
o
u
r
O
r
g
a
n
i
z
a
t
i
o
n
.
•
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
Yu
2018).
2
3
Monthly
Per
Capita
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).
4
Defining
Low
Earnings
Household
•
Low
Earnings
Threshold
=
Adjusted
world
Bank
poverty
line
=
$
3.2
*
PP
P
*
Social
Sec
urity
*
30
•
Low
Ea
r
ni
n
gs
Ho
u
s
e
hold
if
MPCHE
<
Lo
w
Ea
r
ni
n
gs
Th
r
e
s
hold
5
R
e
g
r
e
s
s
i
o
n
M
o
d
e
l
–
H
o
u
s
e
h
o
l
d
L
e
v
e
l
•
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
l
o
w
ea
r
ning
s
0
otherwise
•
Independent
Variables
–
Social,
e
c
o
n
omi
c
an
d
d
e
m
o
g
raphi
c
c
haracteris
t
ics
o
f
the
households.
6
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.
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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Presentation Transcript
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
