Impacts of Vocational Education and Training on Employment and Wages in Indian Manufacturing Industries: Variation across Social Groups—Empirical Evidences from the 68th Round NSSO Data

• DOI: 10.1007/s41027-017-0074-3
• Publication Date: 2017-11-21T13:46:14Z
• Authors: Tanima Banerjee
• Keywords: Sample (material); Manufacturing sector; Survey Sampling; Manufacturing

Vocational education and training (VET) is critical in developing skilled manpower resources in a country. However, in India, where various administrative and institutional factors are key in the determination of employment and wages, people from all social groups may not benefit equally, from VET. This study analyses how the impact of VET on employment and wages varies across social groups in the Indian manufacturing sector. The main data source for this study is the Employment and Unemployment Survey in India (10th Schedule) of the 68th National Sample Survey quinquennial round (2011–2012). To tackle the problem of bias in sample selection, this study uses Heckman’s Sample Selection Model (1979) with the two-steps estimation technique (Heckit). It reveals that VET significantly enhances participation from all social groups in the manufacturing sector and aggregates wages, but is ineffective in certain manufacturing industries. In certain cases, VET variously impacts wages across workers from different castes and ethnicities.