Employment and Earning Differentials Among Vocationally Trained Youth: Evidence from field studies in Punjab and Haryana in India

This article examines the employability of vocationally trained youth and estimates their earning functions and existing wage differentials by gender and social groups in both Punjab and Haryana. Using primary data from two selected districts (one from each state) with a sample size of 914 pass-outs from 19 training institutes, we find that lack of demand and skill issues restrict vocationally trained youth to obtain quality jobs in these districts. Hence, most of them are either found in contractual jobs with a lower level of earning or remain unemployed from the time of completion of their training. Moreover, significant earning/wage differences are noted across gender and social groups. Female and Scheduled Caste (SC) workers are discriminated by getting paid lesser than their male and upper caste counterparts, despite their similar training and skill endowments. Hence, it is suggested that government intervention is necessary to lower the existing skill gap and to improve the quality of jobs for vocationally trained youth to reduce the rising unemployment problem.