The researchers look at urban labour market flows in India since 2017 and examine the impact of these different flows on the unemployment rates at the aggregate level and for men and women separately.
Authors
Rahul Menon, Associate Professor, Jindal School of Government and Public Policy, O.P. Jindal Global University, Sonipat, Haryana, India.
Paaritosh Nath, Assistant Professor, Azim Premji University.
Summary
Utilising data from the Periodic Labour Force Survey (PLFS), we estimate quarterly changes in urban labour market flows over the period 2018–2022 and the impact on unemployment rates for men and women. Our analysis provides non-intuitive explanations for established findings as well as pointing out important questions for further study. Both men and women’s unemployment rates have reduced in 2022 compared to 2018, showing rapid reductions following the high levels reached during the lockdown.
Women’s unemployment rates have consistently been higher than men throughout this period. The gap between men and women’s unemployment rates reduced during the lockdown, but have shown signs of increasing since 2021, even as unemployment rates have fallen. For women, flows from the labour force to non-participation play a larger role in explaining changes in unemployment rates as compared to men.
Flows from the labour force to non-participation, however, have reduced since the pandemic, providing an explanation as to why labour force participation rates (LFPRs) have increased, namely women staying for longer in the labour force rather than more women entering it. Despite rising LFPRs, the gender gap in unemployment rates have risen, in contrast to developed economies.
Published in: The Indian Journal of Labour Economics
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