2019-07-08
Skills Training and Employment Outcomes in Rural Bihar
Publication
Publication
In a number of countries, youth unemployment is a pressing concern. In India, 54% of the country’s population is below the age of 25 and faces a high rate of (disguised) unemployment. To augment youth employment, the Government of India has launched a number of skills training programs. This paper deals with participation in and the impact of one of these programs [Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDUGKY)] located in rural Bihar, one of India’s poorest states. The analysis is based on data collected in mid-2016 and compares trained participants with non-participants who applied for the scheme but eventually did not attend. We find that the training program squarely reaches the intended target group—rural poor youth. Initially, the program leads to a 29 percentage point increase in the employment rate of the trained graduates. However, 2–6 months after the training, the employment effect of the program drops to zero. A third of the placed graduates leave their jobs due to caste-based discrimination, and another third leave due to a mismatch between the salaries offered and their living costs. The upshot is that while the training program enhances job market prospects, other labor market factors undo the positive effects.
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doi.org/10.1007/s41027-019-00167-8, hdl.handle.net/1765/118097 | |
The Indian Journal of Labour Economics | |
Organisation | International Institute of Social Studies of Erasmus University (ISS) |
Chakravorty, B., & Bedi, A. S. (2019). Skills Training and Employment Outcomes in Rural Bihar. The Indian Journal of Labour Economics. doi:10.1007/s41027-019-00167-8 |