Employability and Earning Differentials Among Technically and Vocationally Trained Youth in India

Abstract

Based on both NSS (1993–94, 1999–2000, 2004–05, and 2011–12 rounds) and PLFS (2017–18) data, this paper examines the employability and earning/wage differentials among vocationally and technically trained youth and explored its determinants in India. It is found that although the number of vocationally and technically trained youth increased during the last decade, their work force participation had declined substantially. We have also noted an upsurge in the open unemployment among these trained youth. The job market distress is being reflected by the large share of employment of these trained youth in agriculture and allied sectors or in the low paid and informal service sectors, and lack of employment opportunities in industries. Moreover, the prevalence of both stick floor (in case of female) and glass ceiling (in case of Backward Castes) effects in the vocational and technical labour market is the main reason for the existing wage differential by gender and caste groups in India. Based on these findings, it is suggested that reducing the labour market demand-supply gap through required job opportunities in industry is necessary. This would not only improve the employability of vocationally and technically trained youth, but also help reducing their existing wage differentials.