Impact of formal vocational training on the earnings of self-employed individuals in rural India

Indrajit Bairagya

Journal of Business Venturing Insights, 2021, vol. 16, issue C

Abstract: The study examines the impact of participation in formal vocational training on the earnings of rural self-employed individuals in India, based on both descriptive statistics and 2SLS based econometric analysis. The results show that even though formal vocational training helps self-employed individuals earn a higher income and that a great initiative has been taken by the government to promote skill development in recent times, a meagre proportion of rural self-employed has received formal vocational training. Therefore, there is a need for an appropriate policy attention towards enhancing the participation of rural self-employed individuals in the formal vocational training programmes on a grander scale. Moreover, a substantial heterogeneity is observed in terms of the duration of training programmes. A longer duration (12 months or more) training helps enhance the mean earnings significantly as compared to a relatively shorter duration training. Considering that a shorter duration training is cost-effective from the supply-side and entails a lesser opportunity cost for self-employed when it comes to participation, policy should revisit the course structure and curriculum of shorter duration training programmes in order to ensure that these become more effective in terms of fetching higher earnings.

Keywords: Self-employment; Rural; Skill; Vocational training and education; Earnings (search for similar items in EconPapers)
JEL-codes: J24 L26 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2352673421000470
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000470

DOI: 10.1016/j.jbvi.2021.e00269

Access Statistics for this article

Journal of Business Venturing Insights is currently edited by Dimo Dimov

More articles in Journal of Business Venturing Insights from Elsevier
Bibliographic data for series maintained by Catherine Liu ().