Education And Labour Market Outcomes: Evidence From India

In this paper, the impact of education on labour market outcomes has been analysed by using data from various rounds of the National Sample Survey (NSS) of India. The occupational destination has been examined by using both static multinomial logit analyses and structural dynamic discrete choice modelling. The latter approach involves the use of a novel approach to the construction of a pseudo-panel from repeated cross-section data, and is particularly useful as a means of evaluating policy impacts over time. We find that the policy to expand educational provision leads, initially to an increased take-up of education, and in the longer term, to an increased propensity for workers to enter non-manual employment.