IER News & blogs

Usually this message is a short one to thank our research partners and sponsors. Whilst we make those thanks, and sincerely, this year is also different. Let’s be honest, 2020 wasn’t a good year.

As the Covid pandemic unfolded, jobs suffered and the labour market is now loosening. The pre-Covid rise in youth unemployment has become worse, a huge swathe of the self-employed have disappeared, and jobs that were furloughed in some industries are now disappearing as government support changes.

The Low Pay Commission's Report 2020 was launched on 9th December 2020, and was used to set National Minimum Wage (NMW) rates for 2020/21 as announced by the Chancellor Rishi Sunak on 25th November 2020.

IER's report 'How Employers Set Pay For Apprentices' involved a multivariate analysis of apprenticeship pay data, and 30 case study interviews with employers delivering apprenticeship frameworks where low pay was greatest.

The study found that the minimum wage for apprentices applied almost exclusively to new recruits rather than existing employees, who were paid their existing rate for the job. For new recruits, few employers paid the apprentice minimum wage. Instead they added a bonus: as a recognition of the apprentices contribution to the business; out of 'fairness' as part of a Corporate Responsibility; and due to wider market rates either as a result of market forces or because of occupation or sector wide agreed pay rates. The NMW apprentice rate was most likely to be used in those sectors where fully qualified workers were paid the NMW age rate in order to maintain differentials.

This discussion paper, written by Sudipa Sarkar, Bhaskar Chakravorty and Clare Lyonette, analyses primary survey data from participants of a large-scale skill-training programme that targets rural poor youths in India.

Focusing on two dimensions of individuals' identity: caste and gender, the empirical findings suggest that training participants from the most socially disadvantaged groups - Scheduled Tribe (ST) and Scheduled Caste (SC) - have significantly lower income aspiration when compared to Other Backward Class (OBC) and Other Caste (OC) participants. Female participants also have significantly lower aspiration than their male counterparts.

The aspiration gaps exist even after controlling for various background characteristics, including participants' pre-training personality traits and soft skills. Individual-level and household-level factors mediate some of the aspiration gaps based on caste and gender.

The paper finds evidence that for SC/ST female participants, the disadvantages on both caste and gender dimensions add up; this is reflected in their lower income aspiration levels, in comparison with all other groups. Thus, the results support the hypothesis of "double jeopardy" instead of "intersectionality" in this context.

This is the first paper of an ongoing project funded through the Global Challenges Research Fund (GCRF).

IER has been working with the Co-op Group to evaluate its apprenticeship programmes. The initial study was halted due to lockdown restrictions and it was decided to change the focus of the study to see how apprenticeships could be developed to meet the changing job roles and skills needs, and help to ‘build back better’.

The study focused on the two sectors where the Co-op delivers most apprenticeships: food retail and funeral care. The research involved the analysis of employment and apprenticeship data and interviews with the main employers, sector groups and providers across the two sectors.

Despite distinct differences between the two sectors, there were a lot of common themes including a broadening of job roles, more flexible working and the need to develop digital skills.

The report 'Future Proofing Apprenticeships' was launched at a virtual conference on Thursday 26th November. Attendees included sector stakeholders, apprenticeship organisations and Government Departments.

The nationwide lockdown in India hit migrant workers particularly hard and once travel restrictions were lifted, 11 million interstate migrants returned home. In this blog, Bhaskar Chakravorty, IER PhD student, and colleagues, present key findings from a telephone survey of young people from Bihar and Jharkhand who were trainees of a large skill-based training programme, titled ‘Deen Dayal Upadhyay Grameen Kaushalya Yojana’ (DDU-GKY) in India. It places disadvantaged rural youth into formal salaried jobs in manufacturing and services, often in urban areas in other states. The survey findings focus on the impact of the lockdown on interstate migrant workers and their willingness to migrate again in the future. Read more here.