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IZA Journal of Labor & Development

Table 5 IV-Probit estimates of the probability for informal sector employment

From: The informal labour market in India: transitory or permanent employment for migrants?

 

IV1: Historical migration rate: state level

IV2: Economic growth of 94: State level

Simple probit

 

Full sample

Male only

Full sample

Male only

Dependent Variable: Employment at Informal sector

(1) Coefficient

(2) M.E.

(3) Coefficient

(4) M.E.

(5) Coefficient

(6) M.E.

(7) Coefficient

(8) M.E.

(9) Coefficient

Migration duration

−0.073***

−0.028***

−0.073***

−0.028***

−0.073***

−0.028***

−0.073**

−0.028**

−0.003

 

(0.016)

(0.006)

(0.018)

(0.007)

(0.024)

(0.010)

(0.032)

(0.013)

(0.002)

Urban Native

−0.512***

−0.187***

−0.517***

−0.190***

−0.509***

−0.186***

−0.511***

−0.188***

−0.130***

 

(0.085)

(0.031)

(0.096)

(0.035)

(0.125)

(0.046)

(0.164)

(0.060)

(0.036)

No. of Households

0.032***

0.012***

0.033***

0.013***

0.032***

0.012***

0.033**

0.013***

0.042***

 

(0.009)

(0.003)

(0.010)

(0.004)

(0.010)

(0.004)

(0.013)

(0.005)

(0.008)

Married

0.108

0.041

0.081

0.031

0.104

0.040

0.079

0.030

0.047

 

(0.102)

(0.038)

(0.110)

(0.042)

(0.103)

(0.038)

(0.111)

(0.042)

(0.118)

Primary Education

−0.135**

−0.051**

−0.077

−0.029

−0.134**

−0.051**

−0.076

−0.029

−0.174***

 

(0.063)

(0.023)

(0.066)

(0.025)

(0.066)

(0.024)

(0.069)

(0.026)

(0.066)

Secondary Education

−0.306***

−0.114***

−0.268***

−0.101***

−0.306***

−0.115***

−0.267***

−0.101***

−0.364***

 

(0.062)

(0.022)

(0.067)

(0.024)

(0.072)

(0.025)

(0.083)

(0.029)

(0.058)

Matric Completed

−0.562***

−0.201***

−0.547***

−0.198***

−0.563***

−0.202***

−0.549***

−0.199***

−0.674***

 

(0.081)

(0.024)

(0.086)

(0.027)

(0.107)

(0.031)

(0.125)

(0.037)

(0.061)

Tertiary Education

−0.716***

−0.246***

−0.700***

−0.243***

−0.715***

−0.246***

−0.700***

−0.244***

−0.880***

 

(0.101)

(0.026)

(0.109)

(0.029)

(0.139)

(0.035)

(0.167)

(0.044)

(0.065)

Graduate

−0.958***

−0.335***

−0.953***

−0.337***

−0.956***

−0.335***

−0.954***

−0.337***

−1.169***

 

(0.121)

(0.033)

(0.131)

(0.037)

(0.173)

(0.047)

(0.211)

(0.058)

(0.063)

High caste

0.101*

0.039*

0.092*

0.036*

0.102*

0.040*

0.093*

0.036*

0.103*

 

(0.052)

(0.020)

(0.054)

(0.021)

(0.052)

(0.020)

(0.055)

(0.021)

(0.057)

OBC

0.119**

0.046**

0.122**

0.047**

0.122**

0.047**

0.125*

0.049*

0.182***

 

(0.056)

(0.022)

(0.058)

(0.023)

(0.062)

(0.024)

(0.067)

(0.026)

(0.057)

Dalit

0.015

0.006

−0.009

−0.004

0.019

0.008

−0.005

−0.002

0.022

 

(0.056)

(0.022)

(0.059)

(0.023)

(0.056)

(0.022)

(0.059)

(0.023)

(0.062)

Adivasi

−0.185**

−0.069**

−0.180*

−0.068**

−0.181**

−0.068**

−0.177*

−0.067*

−0.195**

 

(0.090)

(0.033)

(0.095)

(0.035)

(0.091)

(0.033)

(0.097)

(0.035)

(0.098)

Muslim

0.171**

0.067**

0.191**

0.075**

0.175**

0.068**

0.195*

0.077**

0.297***

 

(0.073)

(0.028)

(0.076)

(0.030)

(0.088)

(0.034)

(0.100)

(0.039)

(0.065)

Sikh, Jain

0.086

0.033

0.049

0.019

0.088

0.034

0.051

0.020

0.168

 

(0.100)

(0.039)

(0.104)

(0.041)

(0.105)

(0.041)

(0.115)

(0.045)

(0.105)

Christian

−0.055

−0.021

−0.074

−0.028

−0.053

−0.020

−0.072

−0.028

−0.106

 

(0.112)

(0.043)

(0.119)

(0.045)

(0.114)

(0.043)

(0.120)

(0.046)

(0.120)

Dependency Ratio

−0.120*

−0.046*

−0.121*

−0.047*

−0.117*

−0.045*

−0.116

−0.045

−0.104

 

(0.067)

(0.026)

(0.071)

(0.028)

(0.067)

(0.026)

(0.072)

(0.028)

(0.073)

City Dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

District Dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

State Dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Observations

10,521

10,521

9,668

9,668

10,485

10,485

9,641

9,641

10521

Log pseudolikelihood

−42610

−42610

−38930

−38930

−42490

−42490

−38842

−38842

−5704

chi2

133216

133216

12254

12254

3407

3407

3169

3169

2259

F-Statistics at First Stage

26.91

 

25.44

 

26.83

 

37.69

 

.

Wald test of exogeneity

14.66***

14.66***

13.31***

13.31***

4.814**

4.814**

2.805**

2.805**

.

  1. Source: Indian Human Development Survey 2005: Authors own Calculations. Notes: Robust standard errors in parentheses. Significance code: *p<0.1, **p<0.05, ***p<0.01. M.E. Stands for Marginal Effects which have been calculated at the mean. In all these specifications, we are considering only those as migrant who have migrated from rural to urban areas for jobs. Those who were born in urban setup and migrated to another urban area for job are not considered as migrants.
  2. In the regression we also control for head of the households age, age squared, sex, asset status and fathers education and occupation.
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