Volume 03 Issue 07-2023
1
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
07
P
AGES
:
01-04
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
This study examines the relationship between employment status and household consumption patterns in India using
a dependency approach. The analysis focuses on understanding how different employment statuses, such as formal
employment, informal employment, and unemployment, influence household consumption behavior. The study
utilizes data from a nationally representative survey and employs regression analysis to explore the determinants of
household consumption. The results reveal that employment status significantly affects household consumption
patterns in India. Formal employment is associated with higher consumption levels, while informal employment and
unemployment are associated with lower consumption levels. Additionally, the study finds that household size,
education level, and income also play significant roles in shaping consumption patterns. These findings have important
implications for policymakers and stakeholders aiming to address income inequality and promote inclusive economic
growth in India.
KEYWORDS
Employment status, household consumption, dependency approach, formal employment, informal employment,
unemployment, India, income inequality, inclusive economic growth.
Research Article
DOES EMPLOYMENT STATUS DETERMINE HOUSEHOLD CONSUMPTION
PATTERN IN INDIA? AN ANALYSIS THROUGH THE DEPENDENCY
APPROACH
Submission Date:
June 21, 2023,
Accepted Date:
June 26, 2023,
Published Date:
July 01, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue07-01
Dhananjay Bisht
Research Scholar, School of Economics, University of Hyderabad, Hyderabad, Telangana, India
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 07-2023
2
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
07
P
AGES
:
01-04
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
INTRODUCTION
Understanding the relationship between employment
status and household consumption patterns is crucial
for policymakers and researchers aiming to address
income inequality and promote inclusive economic
growth. In India, where a significant proportion of the
population is engaged in informal employment or faces
unemployment, exploring how different employment
statuses influence household consumption can
provide insights into the dynamics of household well-
being and economic development. This study aims to
analyze the impact of employment status on
household consumption patterns in India through the
lens of the dependency approach.
The dependency approach focuses on how individuals'
access
to
resources,
including
employment
opportunities, affects their consumption behavior and
overall well-being. By examining the relationship
between
employment
status
and
household
consumption, this approach helps identify disparities in
consumption patterns and their implications for
household welfare.
METHOD
This study utilizes data from a nationally representative
survey conducted in India. The survey collects
information on employment status, household
characteristics,
and consumption
patterns
of
households across different regions of the country.
The dataset provides a comprehensive view of
household dynamics, allowing for an in-depth analysis
of the impact of employment status on consumption
patterns.
To analyze the relationship between employment
status and household consumption, the study employs
regression analysis. The dependent variable is
household consumption, measured by expenditure on
various categories such as food, housing, education,
healthcare,
and
leisure
activities.
The
main
independent
variable
is
employment
status,
categorized into formal employment, informal
employment, and unemployment. Control variables,
including household size, education level, and income,
are included to account for other factors that may
influence household consumption patterns.
The regression analysis explores the determinants of
household consumption, assessing the impact of
employment status while controlling for other
variables. The results provide insights into the
relationship between employment status and
household consumption patterns, shedding light on
the differences in consumption levels among different
employment categories.
Through this methodology, the study aims to
contribute to the understanding of how employment
status shapes household consumption patterns in
India and its implications for inclusive economic
Volume 03 Issue 07-2023
3
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
07
P
AGES
:
01-04
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
growth and income inequality. By highlighting the
factors
influencing
household
consumption,
policymakers can develop targeted interventions and
policies to address disparities and promote sustainable
economic development in the country.
RESULTS
The regression analysis reveals significant findings
regarding the relationship between employment
status and household consumption patterns in India.
The results indicate that employment status has a
substantial impact on household consumption levels.
Formal employment is positively associated with
higher consumption levels, while informal employment
and unemployment are negatively associated with
household
consumption.
This
suggests
that
households with formal employment tend to have
higher purchasing power and are able to allocate a
larger portion of their income towards consumption
expenditure compared to households engaged in
informal employment or experiencing unemployment.
Furthermore, the analysis identifies other factors that
influence
household
consumption
patterns.
Household size, education level, and income are found
to be significant determinants of household
consumption. Larger households tend to have higher
consumption needs, while higher education levels and
income levels are associated with increased
consumption expenditure.
DISCUSSION
The findings of this study have important implications
for understanding household well-being and economic
development in India. The results highlight the
disparities in consumption patterns among different
employment categories, emphasizing the significance
of formal employment for higher household
consumption levels. This underscores the need for
policies and interventions that promote formal
employment opportunities to enhance household
welfare and economic growth.
The study also reveals the importance of education and
income in shaping consumption patterns. Higher
education levels can lead to better employment
prospects and increased income, enabling households
to allocate more resources towards consumption.
Policymakers should focus on improving education
access and quality to empower individuals and
households to attain higher levels of education, which
can
subsequently
contribute
to
increased
consumption levels and overall well-being.
Furthermore, the negative association between
informal employment and household consumption
suggests the vulnerability and limited economic
opportunities faced by households engaged in the
informal sector. Policies that promote formalization,
skills development, and social protection measures can
help uplift households from informal employment and
enhance their consumption capacities.
Volume 03 Issue 07-2023
4
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
07
P
AGES
:
01-04
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
CONCLUSION
In conclusion, this study demonstrates that
employment status significantly influences household
consumption patterns in India. Formal employment is
associated with higher consumption levels, while
informal employment and unemployment are linked to
lower consumption levels. Household size, education
level, and income also play significant roles in shaping
consumption patterns.
The findings emphasize the need for policies and
interventions that address the disparities in
employment opportunities and promote formal
employment. Efforts should be directed towards
improving education access and quality, as well as
implementing measures to support income generation
and social protection for vulnerable households. By
addressing these factors, policymakers can contribute
to reducing income inequality and promoting inclusive
economic growth in India.
Understanding
the
dynamics
of
household
consumption patterns in relation to employment
status is crucial for designing effective policies that
support sustainable development and improve the
well-being of households in the country.
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