BackAt the beginning of their careers
At the beginning of their careers
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Last week we looked at D2 households, where the chief wage earner was married with grown-up children, and was a graduate or postgraduate skilled worker. We move down the life stage this week to the D1 segment, which involves the same educational and occupational profile but where the chief wage earner is young, single or married without children, and lives in a joint family.
This is a very small segment, 27th in size among urban consumer segments, with just 300,000 households spread across India. As nearly three-quarters of the chief wage earners are below the age of 35, the D1 segment represents those people who are on the first rungs of their career. Around 45% of them are married and 80% of the households have no minors, yet the household size is not that small, and one-third of the households have four or more members.
The D1 segment does not include single people who are living alone or married couples in nuclear families—this is a segment with a joint family set-up, households where the son is bringing in the largest share of income, but either has not moved out of his father’s home yet or has brought his parents to stay with him in the city. It is typically the son who is the chief wage earner in this case.
Also See | Indicus Analytics Research (Graphic)
Eighty-five per cent of the spouses are in fact homemakers; this would reflect their lower educational qualifications as in C1 households, in which they have a better education profile and more are employed, adding to the household kitty.
Note that though this segment has relatively well-educated chief wage earners, as they are not professionals, their incomes are well below that of C1 households, where they are at a similar life stage but are professionals.
Also See | D1 Segment (Graphic)
As much as 69% of D1 households earn less than Rs3 lakh per year, compared with 41% in the C1 segment. The median household income is also relatively low at Rs1,65,900 per annum. There is a small proportion—around 7% of the households—earning more than Rs10 lakh per annum; these would be among those where the chief wage earners have postgraduate qualifications or other adult earning members are also well educated.
Half the D1 households own the home they live in; lower-income households would in all probability be living in homes bought by the earlier generation. One of the reasons the sons do not move out even after marriage is the cost of purchasing another house. This changes over the course time as earnings go up, of course, and children appear on the scene.
Also Read | Previous Indicus Analytics stories
The top ranking states in this segment are Maharashtra (Mumbai, Thane, Pune, Nagpur and Nashik rank in the top 20 districts), Tamil Nadu (Chennai, Coimbatore and Kancheepuram), West Bengal (Kolkata, North 24 Parganas and Bardhaman), Karnataka (Bangalore) and Gujarat (Ahmedabad and Surat). While Delhi ranks second among the districts, as a state it ranks just below Gujarat in the concentration of households in the D1 segment.
The sector garnering the largest share of employment for the chief wage earner is education, health and social work; followed by wholesale and retail trade; manufacturing and public administration. These sectors take up a sizeable chunk of those with basic college education, while industries such as textiles, auto and ancillaries (in Pune, Coimbatore, Kancheepuram, etc.) employ those with suitable vocational training.
Graphics by Shyamal Banerjee and Ahmed Raza Khan / Mint
This series is brought to you by research firm Indicus Analytics Pvt. Ltd
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