Labour market outcome for formal vocational education and training in India: Safety net and beyond

Abstract

This paper explores the safety net aspect of the labour market incentive for vocational education and training (VET) in the Indian context. Using two rounds of National Sample Survey data this paper explores the wage, unemployment, and status of employment of the individuals who participate in the labour market after completing VET. It is observed that there is a significant positive return of VET to the wages, and a significant number of individuals participate in salaried work. However, unemployment from VET is quite high, particularly for the individuals who have done VET courses which correspond to lower levels of general education. Institutional factors which may impact this labour market outcome are also explored for the Indian context. © 2016