Skill mismatch and returns to education in manufacturing: A case of India's textile and clothing industry

Arbeitspapier

Today, as India treads the path of becoming a knowledge economy, we face a paradox of intensifying skill shortages coupled with unemployment or underemployment among highly educated workers. While a shortage of skills (or under-education) is definitely a cause of concern, surplus education (or over-education) can also lead to underutilization of skills and further lower demand for low skill workers. Given this scenario, the paper attempts to measure the incidence and extent of skill/education mismatch and analyse the economic returns/cost to over/under education in one of India's largest labour intensive industries: Textiles and Clothing (T&C). The study is based on the 68th round of NSS Employment and Unemployment Survey estimates. Using the over-education/required education/undereducation (ORU) models on a cross section dataset of individuals employed (as a regular salaried/ wage employee or as casual wage labour) in India's T&C industry, we find that the overall educational mismatch ratio during 2011-12 was to the tune of 67.61%. Further, results indicate that while returns to surplus education is positive, it is less in magnitude as compared to returns to required education, suggesting underutilization of excess education. There's also a significant wage penalty associated with each deficit year of education.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 364

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demand and Supply of Labor: General ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty ; Personnel Economics: Training
• Thema: Skill mismatch ; textiles ; clothing ; over-education ; required education ; undereducation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kukreja, Prateek
• Ereignis: Veröffentlichung
• (wer): Indian Council for Research on International Economic Relations (ICRIER)
• (wo): New Delhi
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/203698
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ