Indian urban workers' labour market transitions

Abstract

This paper studies gross labour market flows and determinants of labour market transitions for urban Indian workers using a panel dataset constructed from Indian Periodic Labour Force Survey (PLFS) data for the period 2017--18 to 2019--20. Longitudinal studies based on the PLFS have been hampered by data problems that prevent a straightforward merging of the 2017--18 and 2018--19 data releases. In this paper, we propose and validate a matching procedure based on individual and household characteristics that can successfully link almost all records across these two years. We use the constructed data set to document a number of stylised facts about gross worker flows and to estimate the effects of different individual characteristics and work histories on probabilities of job gain and loss.

24 pages, 3 figures. Major revision. Section on post-COVID period removed. Qualitative results unchanged