Schooling, Informal Experience and Formal Sector Earnings: A Study of Indian Workers

Posted: 18 Oct 1998

See all articles by Bibhas Saha

Bibhas Saha

University of East Anglia (UEA) - School of Economic and Social Studies

Subrata Sarkar

Indira Gandhi Institute of Development Research (IGIDR)

Abstract

This paper estimates an earnings function for male workers belonging to the Indian corporate sector. The model allows for differential rates of return to schooling and distinguishes tenure from total labor market experience. The rate of return to schooling is found to be low up to the junior level, increases significantly at the secondary and undergraduate levels but declines sharply at the masters level. Seniority and firm-specific factors are found to be important determinants of earnings. When years of unemployment and informal experience are incorporated, earnings of low education workers appear to be driven entirely by formal sector experience.

JEL Classification: J31, O15

Suggested Citation

Saha, Bibhas C. and Sarkar, Subrata, Schooling, Informal Experience and Formal Sector Earnings: A Study of Indian Workers. Available at SSRN: https://ssrn.com/abstract=113988

Bibhas C. Saha

University of East Anglia (UEA) - School of Economic and Social Studies ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom
+44 0 1603 593404 (Phone)
+44 0 1603 456259 (Fax)

HOME PAGE: http://www.uea.ac.uk/eco/people/saha_b.htm

Subrata Sarkar (Contact Author)

Indira Gandhi Institute of Development Research (IGIDR) ( email )

Gen A.K. Vaidya Marg Santoshnagar
Goregaon (East)
Bombay 400065, Maharashtra
India
(91)-(22)-840 0919 (Phone)
(91)-(22)-840 2752 (Fax)

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