Indian Labour Markets and Returns to Education, 1983 to 2009-10
The present study is an attempt to examine the trends in returns to education in light of the long-term economic growth in India during 1983 to 2009-10. It outlines various forms of inequality issues prevalent in Indian labour markets, with respect to the rural/urban areas, gender, caste and nature of work. The unit level data from 6 rounds of National Sample Survey during 1983, 1987-88, 1993-94, 1999-2000, 2004-05 and 2009-10 were used for this study. Mincer wage function was estimated by using the OLS method and the results were also compared to the median wage equation, which proved the consistency of these estimates. The casual wage markets for males provided incentives for higher education till some intermediate levels in the form of higher wage earnings than their illiterate or below primary educated counterparts but no additional advantage for secondary or graduate levels of education. Higher education could not translate into better wage earnings for female casual workers. The returns to all education levels were converging at low levels with the returns for secondary and graduate levels for urban casual male workers declining over time. There was a decline in the returns to secondary and graduate level of education for rural male regular workers with almost no change in the pattern of returns for urban male regular workers. The returns to education for graduation for female workers increased tremendously due to increased employment opportunities for better educated females in the India during the last decade of fast economic growth, led largely by the growth of the service sector. While there is need to enhance public investment in education for improving higher education opportunities in India, there is also a need to reorient rural education by focusing on imparting working skills between middle level of education and secondary levels. The education curriculum must ensure that higher education translates into better wage earnings for the unskilled or semi-skilled majority of the rural workforce in the long run.
|Date of creation:||Dec 2012|
|Contact details of provider:|| Postal: 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN|
Phone: +81-(0)78 803 7036
Fax: +81-(0)78 803 7059
Web page: http://www.rieb.kobe-u.ac.jp/index-e.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chamarbagwala, Rubiana, 2006. "Economic Liberalization and Wage Inequality in India," World Development, Elsevier, vol. 34(12), pages 1997-2015, December.
- Long, Mark C., 2010. "Changes in the returns to education and college quality," Economics of Education Review, Elsevier, vol. 29(3), pages 338-347, June.
- Azam, Mehtabul, 2012.
"Changes in Wage Structure in Urban India, 1983–2004: A Quantile Regression Decomposition,"
Elsevier, vol. 40(6), pages 1135-1150.
- Mehtabul Azam, 2008. "Changes in Wage Structure in Urban India, 1983-2004: A Quantile Regression Decomposition," Departmental Working Papers 0807, Southern Methodist University, Department of Economics.
- Azam, Mehtabul, 2009. "Changes in Wage Structure in Urban India 1983-2004: A Quantile Regression Decomposition," IZA Discussion Papers 3963, Institute for the Study of Labor (IZA).
- Trostel, Philip & Walker, Ian & Woolley, Paul, 2002. "Estimates of the economic return to schooling for 28 countries," Labour Economics, Elsevier, vol. 9(1), pages 1-16, February.
- Ito, Takahiro, 2009. "Caste discrimination and transaction costs in the labor market: Evidence from rural North India," Journal of Development Economics, Elsevier, vol. 88(2), pages 292-300, March.
- Takahiro Ito, 2007. "Caste Discrimination and Transaction Costs in the Labor Market: Evidence from Rural North India," Hi-Stat Discussion Paper Series d06-200, Institute of Economic Research, Hitotsubashi University.
- Kijima, Yoko, 2006. "Caste and Tribe Inequality: Evidence from India, 1983-1999," Economic Development and Cultural Change, University of Chicago Press, vol. 54(2), pages 369-404, January.
- 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.
- Utsav Kumar & Prachi Mishra, 2008. "Trade Liberalization and Wage Inequality: Evidence from India," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 291-311, 05.
- Prachi Mishra & Utsav Kumar, 2005. "Trade Liberalization and Wage Inequality; Evidence From India," IMF Working Papers 05/20, International Monetary Fund.
- Arrazola, María & de Hevia, José, 2008. "Three measures of returns to education: An illustration for the case of Spain," Economics of Education Review, Elsevier, vol. 27(3), pages 266-275, June.
- Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
- Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
- Vatta, Kamal & Garg, B.R., 2008. "Rural Non-Farm Sector in Punjab: Pattern and Access to Employment and Income," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 63(2).
- Mehta, Aashish & Hasan, Rana, 2012. "The effects of trade and services liberalization on wage inequality in India," International Review of Economics & Finance, Elsevier, vol. 23(C), pages 75-90.
- Kijima, Yoko, 2006. "Why did wage inequality increase? Evidence from urban India 1983-99," Journal of Development Economics, Elsevier, vol. 81(1), pages 97-117, October.
- Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
- Puja Vasudeva Dutta, 2006. "Returns to Education: New Evidence for India, 1983-1999," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 431-451. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:kob:dpaper:dp2012-33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.