Skill and Wage-Earning Potential: Evidences from Indian Labour Market

• Main Authors: Sonu Madan, Surender Mor
• Format: Article
• Language: English
• Published: Czech Statistical Office 2020-12-01
• Series: Statistika: Statistics and Economy Journal
• Subjects: skill; regular wage earners; wage-earning potential; occupational groups; conditional effect
• Online Access: https://www.czso.cz/documents/10180/125507861/32019720q4_392-407_madan_analyses.pdf/a5c58983-5310-4c78-89e0-b6c10a069129?version=1.1

The focus of paper is on explaining variations in wage earning potential of regular wage earners caused by varying skill levels. Further, the paper attempts to analyse the conditional causal effect for a broad range of occupational groups to infuse external validity during estimation process which helps to explore how universal is the causal effect. The study brought out the fact that skill level of workers affects the wage-earning potential of workers significantly. However, different skill requirements to perform a range of tasks & operations, along with associated complexity, moderates the strength of causal linear relationship and the resultant slope indicating relationship between skill level of workers and their wage-earning potential varies significantly across occupational groups. Thus, conceptualization of task-content based approach of occupations determines wage-earning potential of workers and hereby is a promising boulevard for future research. The study recommends in job training courses along with introduction of intra-occupational diversified range of tasks & operations to secure incremental wage.