individuals not in the labor force work to be engaged in the home sector. Table 2 lists the 1-digit occupations together with some examples of narrower sub-groups that constitute them.<sup>11</sup> I make two more adjustments to the data. First, I classify the bottom five percentile of workers in terms of their hours worked in the market occupations to be engaged in the home sector. Depending on the country and the year, the cut-off for being classified in the marker occupations ranges from 21–24 hours. Second, I drop the bottom five percentile of workers in terms of their incomes when using such data. The income of a worker includes earnings from supplying labor in market occupations together with business and farm income in the previous year. A useful feature of the SEDLAC data is that the data on income are converted to real income in local currency with base year in 2011. Finally, I use sampling weights provided by the surveys to aggregate variables at the group-occupation-cohort level, or any combination thereof.

The next section explains how I calibrate the model using the survey data to recover the parameters of the model including the barriers operating in the labor markets and in the accumulation of human capital. Obtaining the estimates of barriers allows me to conduct counterfactual experiments that quantify their aggregate impact.

|Tab|le 2: Occupational classification<br>|
|---|---|
|Occupation|Sub-groups|
|Managers (MNG)|Chief executives, senior officials and legislators; Administrative and<br>commercial managers; Production and specialized services managers<br>etc.|
|Professionals (PRF)|Science and engineering professionals; Health professionals; Teaching<br>professionals etc.|
|Technicians (TCH)|Science and engineering associate professionals; Health associate<br>professionals; Business and administration associate professionals<br>etc.|
|Clerks (CLR)|General and keyboard clerks; Customer services clerks; Numerical and<br>material recording clerks etc.|
|Sales and personal services workers (SSR)<br>Skilled agricultural workers (AGR)|Personal services workers; Sales workers; Personal care workers etc.<br>Market-oriented skilled agricultural workers; Market-oriented skilled<br>forestry, fishery and hunting workers; Subsistence farmers, fishers,<br>hunters and gatherers|
|Craft workers (CRF)|Building and related trade workers; Metal, machinery and related<br>trade workers; Handicraft and printing workers etc.|
|Machine operators (MOP)|Stationary plant and machine operators; Assemblers; Drivers and<br>mobile plant operators etc.|
|Elementary workers (ELM)|Cleaners and helpers; Agricultural, forestry and fishery laborers;<br>Laborers in mining, construction, manufacturing and transport etc.|
|Home sector workers (HSW)|_Not in labor force_<sup>1</sup>|

1Individuals not in any occupation and not looking for work. For more information on the ISCO-88, see ILO (2012).

> 11 The 1-digit occupations (major groups) in ISCO-88 are comparable to those in ISCO-88. New occupations are introduced in the latter, together with some merging and splitting of older categories. Yet, the changes are restricted at the sub-group or finer levels (ILO, 2012).

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