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Determinants of Wages and Returns to Education in Rural India

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  • Subbaraman, Subhashini
  • von Witzke, Harald

Abstract

This study focuses on estimating determinants of wages across primary, secondary and tertiary sectors in rural India by the type of work contract involved. Casual labourers, with short term work contracts and nearly absent benefits and wage employees, with long term work contracts, higher wages and benefits represent dual sections of the labour market. Here we demonstrate that human capital and other factors that has been proven to explain variation in wages in other labour markets, explain little about wages in casual employment sector. Further, pattern of returns to education for casual labourers were found to decrease with increasing educational levels and was negative for higher education. Such a trend was no t noticed among wage employees, where pattern that was similar with other studies focusing on the whole labour market.

Suggested Citation

  • Subbaraman, Subhashini & von Witzke, Harald, 2006. "Determinants of Wages and Returns to Education in Rural India," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25660, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25660
    DOI: 10.22004/ag.econ.25660
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    References listed on IDEAS

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    1. P. Duraisamy, 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Working Papers 815, Economic Growth Center, Yale University.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Duraisamy, P., 2002. "Changes in returns to education in India, 1983-94: by gender, age-cohort and location," Economics of Education Review, Elsevier, vol. 21(6), pages 609-622, December.
    4. Duraisamy, P., 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Papers 815, Yale - Economic Growth Center.
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    Cited by:

    1. Jannet Farida Jacob, 2018. "Human capital and higher education: rate of returns across disciplines," Economics Bulletin, AccessEcon, vol. 38(2), pages 1241-1256.

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    Keywords

    Labor and Human Capital;

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