Returns to skills in the labour market: evidence from primary survey in Uttar Pradesh
- IASSI Quarterly: Contributions of Indian Social Science
- 38(4), Oct-Dec 2019: p. 634-649
The purpose of this paper is to examine the relationship of the level of skills and income differentials among the employed in the state of Uttar Pradesh based on primary survey evidence. The paper focuses on examining significant variation in the level of income across the hierarchy of skills. The paper is based on primary survey conducted during 2017-18 of employed and unemployed persons in Uttar Pradesh. The study has used Kolmogorov-Smirnov and Shapiro-Wilk test of normality/normal distribution. In addition, two non-para-metric tests, Kruskal-Wallis Test and Mann-Whitney U Test have been applied to show the difference in income across the skill groups. Further, a semi-loglinear regression model has also been used to find the impact of skill on income generation along with the other variables. The results clearly reveal that as the level of skill increases the income also increases. It is found that there is a significant difference in income generation across different levels of skill in the labour market of Uttar Pradesh. The results of the study are significant for the policy makers and it is suggested to provide required level of skills to those who have no skills, and further re-skilling and up-skilling is also desired for better income. The primary survey corroborates the positive relationship between skill and income in the labour market of Uttar Pradesh. - Reproduced
Skill development, Income generation, Labour market, Demographic advantage