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Skill Gaps and Employability: Higher Education in India

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  • Jeemol Unni

Abstract

As India grows into a knowledge economy increasing the use of technology in manufacturing and service industries, the emerging gaps at the level of tertiary education are seen as a major constraint. In this article we address the growing mismatch between skills/education and jobs/occupations. We define types of skill mismatch in the labour market, nature of tertiary education, and occupation and industry, and classify high technology and knowledge-intensive industry (KII). To understand skill gaps we analyse where persons with tertiary education are employed and whether recent years have seen a significant change in the absorption of workers with higher education (HE) in different industry and occupation groups. An analysis of skill gaps in graduate intensity of occupations and high technology manufacturing and knowledge-intensive service (KIS) industry provides a policy perspective and inputs to explore ways to address skill mismatch relating to HE. We conclude that policy that encourages non-graduate technical and non-technical diploma/certificate holders into the lower graduate-intensity occupations would help to close the skill gap and reduce the pressure on graduate HE.

Suggested Citation

  • Jeemol Unni, 2016. "Skill Gaps and Employability: Higher Education in India," Journal of Development Policy and Practice, , vol. 1(1), pages 18-34, January.
    • Handle: RePEc:sae:jodepp:v:1:y:2016:i:1:p:18-34
    DOI: 10.1177/2455133315612310
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    References listed on IDEAS

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    1. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, July.
    2. Leuven, Edwin & Oosterbeek, Hessel, 2011. "Overeducation and Mismatch in the Labor Market," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 283-326, Elsevier.
    3. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
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    Cited by:

    1. Basit Abdullah & Vinoj Abraham & Ritika Jain, 2024. "Youth Unemployment in India: Do Aspirations Matter?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(3), pages 883-908, September.
    2. Chandan Sharma & Sudharshan Reddy Paramati, 2018. "Measuring Inequality of Opportunity for the Backward Communities: Regional Evidence from the Indian Labour Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 479-503, July.
    3. Biswas, Shreya & Das, Upasak, 2022. "Adding fuel to human capital: Exploring the educational effects of cooking fuel choice from rural India," Energy Economics, Elsevier, vol. 105(C).

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