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Skill disparities between manufacturing and services: Insights for job creation

By: Tandon, Anjali.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 60(40), Oct 4, 2025: p.65-74. In: Economic & Political WeeklySummary: The issue of job creation extends beyond generating employment numbers to ensuring that the jobs created also provide improved earning opportunities for workers. This paper provides insights into where the higher-earning jobs occur across different employment activities. A skill–earnings sector matrix is constructed, distinguished by employment activity and sectors for workers with varying levels of skills. Further, empirical estimation of the skill–earnings relationship is used to identify how worker skills translate into earnings. The differences across sectors and employment activity lead to potentially varying patterns of earnings across the skill levels. The observed higher average monthly earnings for low-skilled regular salaried workers in manufacturing, compared to those in services, indicate the potential of manufacturing to create jobs that also offer regular earnings for the low-skilled. – Reproduced https://www.epw.in/journal/2025/40/special-articles/skill-disparities-between-manufacturing-and.html
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Articles Articles Indian Institute of Public Administration
60(40), Oct 4, 2025: p.65-74 Available AR137574

The issue of job creation extends beyond generating employment numbers to ensuring that the jobs created also provide improved earning opportunities for workers. This paper provides insights into where the higher-earning jobs occur across different employment activities. A skill–earnings sector matrix is constructed, distinguished by employment activity and sectors for workers with varying levels of skills. Further, empirical estimation of the skill–earnings relationship is used to identify how worker skills translate into earnings. The differences across sectors and employment activity lead to potentially varying patterns of earnings across the skill levels. The observed higher average monthly earnings for low-skilled regular salaried workers in manufacturing, compared to those in services, indicate the potential of manufacturing to create jobs that also offer regular earnings for the low-skilled. – Reproduced

https://www.epw.in/journal/2025/40/special-articles/skill-disparities-between-manufacturing-and.html

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