Childhood experiences shape employment outcomes in India
By: Communications
Research led by the University of East Anglia (UEA) shows that childhood poverty, poor living conditions and gender can have lasting impacts on employment opportunities and earnings in India.
Researchers discovered that young adults from wealthier, healthier and more stable backgrounds earned more, while those who experienced poverty or repeated adversity in childhood were more likely to be in work but often in lower-paid jobs.
The findings suggest that employment alone is not enough to overcome childhood disadvantage.
The research, led jointly by UEA and the University of Birmingham, analysed data from the Young Lives study, a long-running project that has followed more than 1,000 children growing up in India from age eight to 22.
Drawing on five waves of survey data collected between 2002 and 2016, the researchers examined how childhood living conditions, health and exposure to major family and economic setbacks, or 'shocks', shaped employment outcomes at age 22.
Factors studied included access to electricity, clean water, sanitation and cooking fuel, alongside experiences such as bereavement, illness, parental separation and loss of household income.
The researchers identified four broad childhood pathways, ranging from a "Better-off" group with stable living conditions and few shocks to a "Poorest but stable" group that experienced persistent poverty but relatively stable family circumstances.
Prof Nicholas Vasilakos, from UEA's Norwich Business School, said: "Our findings show that childhood circumstances matter long after childhood has ended. Living conditions, health and exposure to family and economic shocks all play a role in shaping employment opportunities and earnings in early adulthood.
"What happens during childhood can create advantages or disadvantages that build up over time. By age 22, we can already see substantial differences in employment and earnings linked to those early-life experiences."
More likely to work, but earning less
One of the study's main findings was that young people from poorer backgrounds were often more likely to be employed by age 22 but earned significantly less than their more advantaged peers.
Young people from the 'Poorest but stable' group were the most likely to be employed, with an employment rate of 76.4 per cent, compared with 39.5 per cent among those in the 'Better-off' group.
However, the picture was reversed when it came to earnings. Young adults from the most advantaged backgrounds earned the highest wages, averaging around 467 rupees per day, compared with around 330 rupees per day among the less advantaged groups.
Prof Vasilakos said: "One of the most striking findings was that young people from poorer backgrounds were often more likely to be working, but that employment did not necessarily protect them from disadvantage.
"Those from more advantaged backgrounds were less likely to be employed at age 22, but when they did work, they earned considerably more. This suggests that some young people have opportunities to wait for better-quality jobs, while others need to take whatever work is available.
"The research shows that employment and opportunity are not the same thing. Being in work does not automatically lead to better outcomes if access to higher-paying opportunities remains unequal."
A persistent gender gap
The research also revealed substantial gender inequalities.
At age 22, only 48.2 per cent of young women were employed, compared with 76.4 per cent of young men.Among those in work, women earned only 67 per cent of male hourly earnings and 63 per cent of male daily earnings on average.
Even after accounting for factors such as education, caste and location, women still earned around 30 per cent less per hour and 38 per cent less per day than men.
The study found that women from the 'Poorest but stable' group faced the greatest disadvantage, recording the lowest earnings of all female groups.
Among young men, earnings were lowest for those who had experienced the highest number of family and economic shocks while growing up.
Prof Vasilakos said: "The study highlights a double disadvantage facing many young women. They are less likely to be employed than young men and, when they do find work, they typically earn less.
"We found that women from the poorest backgrounds experienced the lowest earnings of all female groups, suggesting that the effects of childhood poverty can be particularly damaging for women."
Why childhood matters
The findings challenge the idea that labour market inequalities begin only when young people start looking for work.
Instead, the research suggests that childhood experiences leave a lasting imprint on later-life opportunities. Poor housing, limited access to basic services, ill health and family instability can all contribute to lower earnings and reduced opportunities years later.
The researchers argue that efforts to improve employment outcomes should begin much earlier in life, with policies focused on improving children's living conditions, healthcare, nutrition, economic security and opportunities for girls.
Prof Vasilakos said: "Our findings suggest that labour market reforms alone are unlikely to eliminate inequalities. If we want to create more equal employment opportunities, we need to address disadvantage much earlier in life.
"Improving children's living conditions, health and economic security could deliver long-term benefits not just for individuals, but for society as a whole.
"The key message is simple, inequality in adulthood often has its roots in childhood."
'Unequal from the Start? Children's Life Histories and Their Employment Outcomes in India', is published in Oxford Development Studies.
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