Skip to main content

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.