Informality, Education-Occupation Mismatch, and Wages: Evidence from India

Shweta Bahl and Ajay Sharma

Papers from arXiv.org

Abstract: This article examines the intertwining relationship between informality and education-occupation mismatch and the consequent impact on wages. In particular, we discuss two issues: first, the relative importance of informality and education-occupation mismatch in determining wages, and second, the relevance of EOM for formal and informal workers. The analysis reveals that although both informality and EOM are significant determinants of wages, the former is more crucial for a developing country like India. Further, we find that EOM is one of the crucial determinants of wages for formal workers, but it is not critical for informal workers. The study highlights the need for considering the bifurcation of formal-informal workers to understand the complete dynamics of EOM, especially for developing countries where informality is predominant.

Date: 2023-02
New Economics Papers: this item is included in nep-dev and nep-iue
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Informality, education-occupation mismatch, and wages: evidence from India (2024)
Working Paper: Informality, Education-Occupation Mismatch, and Wages: Evidence from India (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2302.12999

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