Saturday, July 03, 2010

Indian Railways Coolies

Who would have thought that within the space of just a few months NPR would broadcast two reports on how startlingly overqualified some lowly employees of Indian Railways happen to be?

In my previous blog post I had discussed an April 1, 2010 report on Morning Edition on Indian Railways ticket collectors who, in their recruitment exam, are asked questions such as "Who won the Australian Open Women's Singles Tennis title in 2002?" and "What's laughing gas made of?"

Now we have a report by Raymond Thibodeaux of Marketplace Morning Report that cites the case of an Indian Railways coolie (or porter) who has a master's degree in Sanskrit! Thibodeaux helpfully points out that coolies earn $300 a month, which is five times the national average, get free medical care, and enjoy job security that is rare in private sector jobs. Not surprisingly, Indian Railways receives 30 applications for every coolie job it advertizes, and among those applicants are people like our Sanskrit pundit.

Now, why would Indian Railways sweeten the coolies' compensation package to such an extent that there are 30 applicants for every coolie job?

One possibility is that Indian Railways has learned from bitter experience that in general 29 of every 30 applicants are not qualified to do a coolie's job and that consequently to get one qualified applicant (for one vacancy) thirty people have to be induced to apply.

But, seriously, how likely is this? The requirements that applicants must meet are pretty clear: applicants must pass "a medical exam, a police background check, and a test to show that they can carry nearly 90 pounds on their heads for the length of two football fields." Why waste time applying if you know exactly what's expected of you and that you'd never make it? No, it is almost certain that quite a few of those 30 applicants are qualified to be coolies. For argument's sake, let's assume that for every coolie job advertized, there are 30 applicants of whom 15 are qualified to do the job.

Indian Railways needs just one qualified applicant per vacancy. Why then is its compensation package so generous that there are so many—fifteen, by my assumption—qualified applicants per vacancy? If the compensation package is gradually reduced to what economists call the market-clearing level, Indian Railways will get the qualified coolies it needs and the Indian taxpayer (who subsidizes Indian Railways) will save a bundle.

So, to return to my question, what's stopping Indian Railways from cutting coolies' compensation packages to the market-clearing level when doing so would have no downside for the Railways and a potentially huge upside for the taxpayer? The answer is simple: India's public sector employees' unions.

I have written at length about the tactics used by these unions to rip off the nation—see here, here, and here. It is a pity that NPR's reporters notice the incongruities in the Indian public sector but are either unable or unwilling to shine a light on the roots of the problem.

Friday, April 02, 2010

Indian Railways Ticket Collectors

National Public Radio's Morning Edition, of April 1, 2010, presented an amusing report from Philip Reeves, its New Delhi correspondent, on how Indian Railways recruits ticket collectors.

Here are extracts from the online transcript of the report at http://www.npr.org/templates/story/story.php?storyId=125441557:

REEVES: Getting a job on India's railways is much harder than you'd think. The other day, I met some young Indians trying to become ticket collectors. They first have to pass what are known as the railway exams, so they've gone back to school. ... They come here every day, to a stark and grubby classroom in a private tuition center tucked in a back alley in New Delhi. The students scribble away in their dog-eared notebooks as the teacher poses one of those brain teasers dreaded by everyone except math geeks.

Having established that thousands of desperate people apply for every ticket collector position -- "because of the job security and the perks" -- Reeves moves on to some of the questions that are asked in the Railway Recruitment Board's tests for ticket collectors:

REEVES: What's the deepest place on Earth - the Caspian, Aegean, Dead Sea or Black Sea? What's the capital of Turkey? And who won the Australian Open Women's Singles Tennis title in 2002?

Now, you can also buy books in India that contain sample papers for the railway exams, and I've got one here. This is for a ticket collector's job. Question 67: What's laughing gas made of?


Several listeners commenting on the NPR web site were convinced that all this was an April Fools joke; one smart aleck took the reference to laughing gas as a sly hint from Reeves.

Unfortunately, Reeves is not kidding. Just google "railway recruitment board ticket collectors test questions" and you will see that an entire industry has sprung up surrounding these tests. For example, this site has the laughing gas question. This one has the Australian Open question.

I found other humdingers: Minus 40 degree centigrade is equal to _____ degree Fahrenheit; What is the value of XC (Roman Number)? Geostationary orbit is at a height of ___? Which of the following is the highest plateau in the world?

And the questions on Indian history made my head spin, even though I can claim -- with unimpeachable justification -- to have had a non-substandard Indian college education.

(At the risk of being slightly off point, I felt that the language skills of the question setters -- or, possibly the online tutors -- left something to be desired:

Which of the following gases is filled in a balloon? (1) Helium (2) Hydrogen (3) Bromine (4) Oxygen

Focus on the image eye is adjusted through ____ (1) Retina (2) Iris (3) Comea (4) Lens

Maximum oil can be extracted from _____ (1) Sunflower (2) Groundnut (3) Mustard (4) Cardamom

Nose starts bleeding when one climbs up mountain due to ____ (1) low pressure (2) high pressure (3) height (4) None of these

Africa occupies which part of the earth? (A) 1/3rd (B) 2/3rd (C) 4/5th (D) 1/5th. etc.)

Readers will immediately see that these questions have little or nothing in them to test a person's ability to be a ticket collector. But that by itself is not an argument against asking these kinds of questions. Labor economists understand that a job applicant's ability to answer an apparently irrelevant question may signal his or her innate ability, when there is no direct test for that ability.

But, honestly, not even an indulgent interpretation of this signaling theory can explain why applicants for an Indian Railways ticket collector's job are being asked these questions. The true reason is that these jobs pay -- in wages, benefits, and job security -- far more than what economists call the equilibrium wage or the free-market wage.

The equilibrium wage is that wage -- loosely interpreted to include the monetary value of non-wage benefits and job security -- at which the number of job applicants is equal to the number of job vacancies: i.e., supply equals demand. When the wage exceeds the equilibrium level, supply exceeds demand: too many applicants chase too few jobs. In such a situation, you need a quasi-legitimate way of bestowing a tiny number of jobs upon the hordes of applicants. And that's what explains all those questions about geostationary orbits, the Roman numbering system, the Australian Open, etc.

Announcing a set of minimal qualifications and holding a lottery would have been more honest and more efficient -- because fewer resources would have been wasted on test prep and the industry that has developed around it. But appearances matter: a lottery just wouldn't look right.

But even if Indian Railways had recruited ticket collectors through lottery, another question would remain: Why are these jobs so damn attractive in the first place? Why couldn't the wages and benefits be reduced to a level closer to the equilibrium or free-market wage? There would still have been at least as many qualified applicants as vacancies, and the Indian taxpayer would have saved some money. Why must job security be as high as it apparently is? Is every ticket collector in Indian Railways a model employee, a freaking saint? Why can't the Indian taxpayer receive true assurance that his or her money will not end up paying the salaries of lousy or venal public employees, that all such creeps will be fired?

The answer has to do with the immense power of the public employees' unions. They can bring India to a halt at any time by arranging crippling strikes throughout the country. The Indian public sector is TBTA: too big to be held accountable. This is why public sector pay and job security levels are stratospheric, relative to private sector levels. This is why there are thousands of applicants for each ticket collector's job. This is why the ticket collectors' test asks who was the British viceroy when the Indian Legislative Councils Act of 1909 was enacted (Lord Minto, apparently, if you must know).

The public sector employees' unions are an absolute blight on India. Indian taxpayers suffer, because their money is wasted. The Indian poor suffer too, because the multitude of government development schemes, even when well intentioned, are implemented with utter disregard for the needs of the people. This happens because the public employees responsible for plan implementation simply aren't accountable. Teachers get paid, but they don't show up to teach. And they can't be fired. The unions have made sure of that.

Check out Fire and Fumes Can't Drive Indians From Hellish Village by Geeta Anand, The Wall Street Journal, March 31, 2010, for an illustrative report. The residents of Bokapahari in Jharkhand state live in a hellish environment. The government spent millions of dollars building apartments to relocate them. But now that the apartments are ready, the Bokapahari are refusing to relocate! The public employees in charge of this development scheme never bothered to talk to the Bokapahari people. They simply went ahead and built the apartments, assuming that the Bokapahari would relocate!

Now, do you think the geniuses in charge of this colossal bungle will be held accountable? Do you think they will be fired? If you do, there is a bridge in Jharkhand that I would like to sell you.

This blog has moved


This blog is now located at http://udayanroy.blogspot.com/.
You will be automatically redirected in 30 seconds, or you may click here.

For feed subscribers, please update your feed subscriptions to
http://udayanroy.blogspot.com/feeds/posts/default.

Thursday, February 04, 2010

“Bengali Bridal Diaspora”

Although I was born in Philadelphia, I spent the first twenty-two years of my life growing up in Calcutta (now Kolkata), the capital city of the Indian state of West Bengal. Consequently, I retain an abiding long-distance interest in the community of Bengalis, the people of West Bengal. This interest drew me to an interesting article in the January 30, 2010 issue of the Economic and Political Weekly: “Bengali Bridal Diaspora: Marriage as a Livelihood Strategy” by Ravinder Kaur, a sociologist at the Humanities and Social Sciences department of the Indian Institute of Technology, New Delhi.
Here are some excerpts from Prof. Kaur’s article:
My observations and research show that Bengali brides are to be found in almost all parts of the country today, especially in the northern region. …

While cross-regional and cross-cultural marriage appears to be occurring more often in general … many more such brides happen to be Bengali who seem to be migrating to far-flung and culturally strange, rural destinations away from their own homeland. …

There also seems to be a long history of Bengali women migrating out (or being pushed out) for marriage. …

The question then is – what are the underlying reasons for this Bengali bridal diaspora? Or, what in the language of traditional migration studies is the “push factor” behind Bengali women marrying outside their own state and culture? What compels Bengali parents to give their daughters in marriage, often over long distances and into regions and families where they have no prior social networks and where daughters, being cultural and social strangers, will consequently find little support if they have difficulties with their marital families?

Prof. Kaur points out that the sex ratio—or, the number of females per 1000 males—is lower in the northern Indian states of Haryana (861), Punjab (874), and Uttar Pradesh (898) than in West Bengal (934), but chooses not to emphasize this as the underlying cause of the Bengali Bridal Diaspora phenomenon. Instead she implicates higher relative poverty and higher relative demand for dowry in West Bengal. Prof. Kaur shines a harsh light on the social consequences of West Bengal’s high relative poverty:
Bengal remains one of the poorest states in the country despite land reform and a socially committed state government which has ruled in continuity for nearly three decades. More than 40% of people remain below the poverty line, signalling the failure of development and the precariousness of livelihood for large numbers of families, especially their female members. Data shows that most women marrying out are from poor rural or urban working class families. … They are reduced to marrying men who are not exactly prosperous. … In the bride-receiving societies, the perception is that such men could not find local brides because they did not have sufficient land or were jobless. Given the shortage of local brides in Haryana and Punjab, such men are unable to compete in the local marriage market and are forced to look outside the state – and West Bengal is a popular destination for seeking brides.
And as for the practice of dowry, wherein grooms—in what are typically arranged marriages—gallantly insist on large cash and non-cash payments from the brides’ families:
The father of one Bengali bride from Hooghly district, married to a low caste man from a village in Utah district of UP [Uttar Pradesh], explained that it was poverty that made them send their daughters away. Further, the demand for dowry by Bengali grooms made it impossible for them to marry their daughters locally. Another reason seemed to be the unattractiveness of local grooms. One mother who had sent two daughters to UP said that, she has to support financially the one daughter who was married locally to a Bengali groom. Very significantly, the long distance marriages that Bengali women enter into are “dowryless” and even the marriage expenditure is taken care of by the needy groom. Thus, economically, such marriages are nearly costless for the girl’s parents while a local marriage would be a significant drain on household resources.

I found Prof. Kaur’s article to be an eye opener. It makes a convincing argument and does a great service in illuminating the social consequences of the economic hell that West Bengal is going through.

However, I wish there were more facts in the article. I wanted more cold hard data on inter-state marriages and on comparative dowry trends in India. Also, I would have liked some testimony from the brave Bengali brides. How have they been faring in their faraway homes? Do they feel abandoned by their parents who chose to send them away to distant lands? Do they blame anybody? And what do their husbands feel about their geographically marooned wives?

Finally, in the absence of more income and wealth data on the northern Indian husbands of Prof. Kaur’s Bengali brides, I am not entirely convinced that the low sex ratio in the northern states has little to do with the Bengali Bridal Diaspora phenomenon. Sure, the northern husband may not ask for a dowry from his Bengali in-laws. But is that because he is richer or is that because he is desperate for a bride on account of being the resident of a low sex ratio state? Conversely, why would a Bengali man ask for a stiff dowry? He may be poor—and greedy!—but he probably knows that other Bengalis are poor too and that, therefore, he could end up without a mate if he insisted on a high dowry. Bengal’s higher female-to-male ratio may be at least part of the answer to this conundrum.

Saturday, September 19, 2009

What kind of paper is the Financial Times? And how can one tell?

Reading the coverage of Obama’s new missile defense policy in yesterday’s Financial Times turned out to be an unexpectedly eye-opening experience for me. The front page article--Obama under fire for U-turn on missiles, by James Blitz and Daniel Dombey, Financial Times, US edition, September 18, 2009—was unremittingly critical. Two other reports on page 3—US defends missile pull-out, by the aforementioned Mr. Dombey, and Obama’s gambit threatens ties with east Europe, by the aforementioned Mr. Blitz, Charles Clover, and Jan Cienski—were a lot more nuanced. And the lead editorial—New US realism on missiles plan—was actually quite supportive.

The front page article was above the fold, had a two-column headline in large type, occupied columns two through six, and was easily the most prominent report on the page. It begins with the words “Barack Obama’s decision to scrap Bush-era plans for a missile defence shield on Thursday triggered dismay in central Europe and among Republicans on Capitol Hill, amid claims that it amounted to a major security concession to Russia” and then manages to create a mildly apocalyptic overall effect without saying anything that would technically be a lie. “The Polish and Czech governments voiced no immediate concern” we are told. But there is no discussion of the reasons for the Polish and Czech governments’ equanimity. Instead, the report then proceeds to quote politician after politician to conjure up an image of a cynical Obama abandoning Europe to the Putin menace. “This is bad news,” says Mirek Topolanek, a former Czech prime minister. Senator John McCain, calls the new policy “seriously misguided”. “I think this is a near catastrophe for American relations with Eastern European countries and many in NATO,” says John Bolton, a former Bush administration official. All that the readers get are these scary sound bites; the arguments behind the sound bites aren’t presented.

The report does give some space to President Obama and Defense Secretary Gates. But their defense of the new policy is also in sound bites. It is mentioned that “Mr Obama emphasised he was following the unanimous advice of his secretary of defence and the joint chiefs of staff,” but it is not made clear why the military brass supported the new policy unanimously. Obama’s argument that the new policy relies on “technology that is both proven and cost-effective” is mentioned but the foundations of that claim are neither supported nor debunked—they are just ignored. The views of non-combatant third party experts are not presented.

When you present a debate in sound bites, the effect can be asymmetric. The apocalyptic types benefit when their arguments are not laid out (in all their demented glory). The reasonable, cool-headed types lose when their arguments are ignored. The guy with the “end is nigh” placard can often get people’s attention. But when he hands you his ten-page single-spaced manifesto, you finally begin to see him for the nut job he really is. On the other hand, a guy who is on the receiving end of loud and angry denunciations has no hope of escape unless he is allowed to boot up his spreadsheets, bring down the temperature, grind through his cost-benefit analyses, and slowly take down his fiery opponent.

Or, to put it differently, if you let A criticize B and you let B deny the criticism, but you let neither A nor B set out a detailed argument, you actually favor A, the critic. You may think you are being even handed, but you actually aren’t.

What was surprising about the FT’s coverage was how different the page-three reports were—and how different in tone the editorial was—from the page-one report. General James Cartwright, vice-chairman of the joint chiefs of staff, and Defense Secretary Gates get more space to explain the military rationale for the new policy. For example: “He [Cartwright] added that the previous European system, focused on 10 long-range missile interceptors in Poland, would have been unable to deal with a barrage of Iranian short and medium-range ballistic missiles. According to recent US intelligence reports, Tehran is making much more progress with such missiles than with longer- range devices.” Notwithstanding several very weasely paragraphs, the editorial is in the end quite forthright: “Whatever view one takes, the plan for installations in central Europe was flawed. Abandoning it makes sense, provided that the US manages the change wisely.”

A disappointing aspect of the coverage was the FT’s unwillingness to point out that the Bush administration’s original proposal to install a missile defense system in eastern Europe was based on a falsehood and that the Russians were right to expose the lie. Here’s an extract from the page-one piece: “The Bush administration had originally proposed the European-based system to counter the perceived threat of Iran developing a nuclear weapon that could be mounted on its increasingly sophisticated missiles … The Czech Republic and Poland saw the bases as a commitment by Washington to increase their security against Russia.” Nobody of sound mind would or could ever believe that Iran was a threat to Poland or the Czech Republic. Yet, the Bush administration was too cowardly to admit that obvious point. The Poles, the Czechs, and everybody else knew that Bush was planning the missile defense system to put pressure on Russia. And yet, Bush brazenly lied that it was all about Iran, and nobody except the Russians would call him on it!

So, what is one to think about the Financial Times’s views on this issue? How wise is it to size up the FT’s thinking by reading the editorial alone? How is one to interpret the tone of the front page report? To what extent should one see an editorial bias in the reporting or, more precisely, in the allocation of prime space to a report that slyly pushed a view that was at variance with the official editorial position?

The front page of a newspaper is a very scarce commodity. It is a safe bet that a large proportion of readers form their views from what they see prominently displayed on the front page; relatively few readers will plough through long articles on the inside pages, especially if they have already read a front-page article on the very same topic. So, when I see a newspaper saying one thing on the inside pages and the editorial pages and conveying a different impression on the front page, I take the front-page “report” to be the true editorial, and I take what’s ostensibly the “editorial” to be mere newsprint, good only for wrapping fish.

Sometimes we can’t say what we really feel when what we feel is too ignobly solipsistic. At such times we embrace subterfuge. The FT is a European paper. It was rattled by what felt like abandonment. Unable to impeach the logic of Obama’s new missile policy, it decided to take the high road on the editorial page and unleash a sneak attack on the front page!

Finally, an odd thing about the FT’s coverage was its unwillingness to address the three hundred-pound gorilla in the room: Why can’t Europe—even today—take care of its own defense?

To sum up, I still don’t know what the FT’s politics are. But I now know enough to discount the editorials when the front page gives me a different vibe.

Wednesday, September 09, 2009

Starting Salaries of Recent College Grads

The National Association of Colleges and Employers (NACE) has just published its Fall 2009 Salary Survey report on starting salary offers to new college graduates, in this case the Class of 2009 bachelor’s degree graduates. The full report is available only to paying members of NACE. But some of the report's findings are available in this public press release. The table below summarizes the main findings.
disciplinesaverage starting salary offer ($)
percent change from previous year
petroleum engineering85,41713
chemical engineering65,6753
computer science61,4670.6
electrical engineering60,5095
all engineering majors59,6704.2
mechanical engineering59,2223.9
information sciences and systems52,8861.1
management information systems50,573-1.8
economics
49,628

-2.8
finance49,1632.1
all majors48,633-1.2
accounting48,4711
business management44,607
-3.4
marketing42,2601.8
political science40,0093
history38,4451
liberal arts36,624-0.3
english36,6043.2
psychology34,5731.4
sociology34,290-3.2
visual and performing arts34,114-2.7

For some reason, the press release doesn't say anything about science and math majors. Anyway, although engineering grads are well ahead of the pack -- and deservedly so, IMHO -- I am glad to see that econ majors are doing pretty well.

Sunday, August 16, 2009

Benegal on Ray on YouTube

Fans of Satyajit Ray, the film director, will thank a good samaritan, whose YouTube ID is kishor101982, for posting on that Web site, in its entirety, a valuable 1984 documentary on Ray's life and (mostly) work by Shyam Benegal, himself a giant of Indian cinema. To stay within YouTube's stringent 10-minute length limit, kishor101982 has chopped up Benegal's documentary into fourteen clips -- numbered from 0 to 13; we may have a computer programmer here! -- of reasonably high quality.

Luckily, I did not feel that I lost much in having to watch the film clip by clip with an interruption every nine-and-a-half minutes or so. Perhaps the documentary nature of the film had something to do with it; the annoyance factor would probably have been higher for a typical narrative feature film. In any case, one wonders what purpose is served by YouTube's ten-minute length limit if it is possible to get around it the way kishor101982 has. Sure, a ten-minute clip will load faster than a ninety-minute clip, but people who post to YouTube are aware of these trade-offs. So, why not let them make their own choices?

August 2026

6 Exercises Physical Therapists Wish Everyone Did to Age Well  By Danielle Friedman, The New York Times, August 15, 2026 Take 25 Minutes to ...