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

Shweta Bahl and Ajay Sharma

No 1241, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: This article examines the intertwining relationship between informality and education-occupation mismatch (EOM) and the consequent impact on the workers' wages. In particular, we discuss two issues - first, the relative importance of informality and education-occupation mismatch in determining the 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.

Keywords: Informality; Education-Occupation Mismatch; India (search for similar items in EconPapers)
JEL-codes: I25 I31 O17 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-dev, nep-iue and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/268804/1/GLO-DP-1241.pdf (application/pdf)

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)
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:zbw:glodps:1241

Access Statistics for this paper

More papers in GLO Discussion Paper Series from Global Labor Organization (GLO) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().