Childhood Disadvantage Shapes Indian Employment Outcomes, Study Finds

New research led by the University of East Anglia (UEA) and the University of Birmingham indicates that childhood poverty, poor living conditions, and gender significantly impact employment opportunities and earnings in India. The study found that young adults from more affluent, healthier, and stable backgrounds achieved higher earnings, while those who experienced poverty or repeated adversity during childhood were more likely to be employed but often in lower-paid positions. These findings, which suggest that employment alone does not necessarily overcome early life disadvantages, are set to be published in Oxford Development Studies under the title "Unequal from the Start? Children's Life Histories and Their Employment Outcomes in India."

The research utilized data from the Young Lives study, a long-term project that tracked over 1,000 children growing up in India from the ages of 8 to 22. Drawing on five waves of survey data collected between 2002 and 2016, researchers analyzed how factors such as childhood living conditions, health, and exposure to major family and economic setbacks—including bereavement, illness, parental separation, and loss of household income—shaped employment outcomes by age 22. The study considered access to essential services like electricity, clean water, sanitation, and cooking fuel. Four broad childhood pathways were identified, ranging from a "Better-off" group with stable living conditions and minimal shocks to a "Poorest but stable" group characterized by persistent poverty but relatively stable family circumstances.

Nicholas Vasilakos, a professor at UEA's Norwich Business School, stated that "childhood circumstances matter long after childhood has ended." He noted that living conditions, health, and exposure to family and economic shocks all contribute to shaping employment opportunities and earnings in early adulthood, creating advantages or disadvantages that accumulate over time. The study revealed that young people from poorer backgrounds were frequently more likely to be employed by age 22, with the "Poorest but stable" group showing an employment rate of 76.4% compared to 39.5% for the "Better-off" group. However, this trend reversed for earnings; those from the most advantaged backgrounds earned significantly more, averaging around 467 rupees per day, whereas less advantaged groups earned approximately 330 rupees per day. Vasilakos highlighted that being employed did not automatically shield individuals from disadvantage, as some could afford to wait for better-quality jobs while others had to accept available work.

Substantial gender inequalities were also uncovered. At age 22, only 48.2% of young women were employed, in contrast to 76.4% of young men. Among those working, women earned, on average, just 67% of male hourly earnings and 63% of male daily earnings. Even after adjusting for education, caste, and location, women still earned about 30% less per hour and 38% less per day than men. The study found that women from the "Poorest but stable" group faced the greatest disadvantage, recording the lowest earnings among all female groups, while among young men, earnings were lowest for those who experienced the highest number of family and economic shocks. Vasilakos described this as a "double disadvantage" for many young women. The findings challenge the notion that labor market inequalities begin only when individuals seek employment, suggesting instead that early life experiences leave a lasting imprint on later-life opportunities. Researchers advocate for earlier interventions, focusing policies on improving children's living conditions, health care, nutrition, economic security, and opportunities for girls.

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