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An empirical analysis of education’s role in employment and economic returns: insights from Jammu and Kashmir

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  • Mohd. Akram

    (Jamia Millia Islamia)

  • Iqra Choudhary

    (Jamia Millia Islamia)

  • Ashfana

    (University of Jammu)

  • Aas Mohammad

    (Jamia Millia Islamia)

Abstract

This study investigates the relationship between education, employment, and economic returns in Jammu and Kashmir, using data from the 7th round of the NSSO’s Annual Periodic Labour Force Survey (PLFs) for 2023–2024. The probit model and Mincer equation methods were employed to assess the role of level of education attainment as a deciding factor for economic returns and employment status. Heckman’s two stage process has been followed to address the sample selection bias. The results reveal a strong positive correlation between higher education levels and the likelihood of securing regular salaried employment, particularly in urban areas, whereas self-employment is more prevalent in rural settings. Disparities persist across social groups, with Scheduled Tribes (ST) facing lower educational returns and employment opportunities. Further, returns to an additional level of education are heterogeneous across broad employment types. The findings of the study offer policy insights to reduce education employment mismatch and to utilise skilled labour force effectively.

Suggested Citation

  • Mohd. Akram & Iqra Choudhary & Ashfana & Aas Mohammad, 2025. "An empirical analysis of education’s role in employment and economic returns: insights from Jammu and Kashmir," SN Business & Economics, Springer, vol. 5(9), pages 1-33, September.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:9:d:10.1007_s43546-025-00894-9
    DOI: 10.1007/s43546-025-00894-9
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