Bornali Bhandari New Delhi March 22, 2016 Outline Long-Run - - PowerPoint PPT Presentation
Bornali Bhandari New Delhi March 22, 2016 Outline Long-Run - - PowerPoint PPT Presentation
NCAER Labour Economics Research Observatory and New Skills at Work Bornali Bhandari New Delhi March 22, 2016 Outline Long-Run Challenge Demographic opportunity Medium-Run Challenge Low employment-output elasticity
Outline
- Long-Run Challenge
– Demographic opportunity
- Medium-Run Challenge
– Low employment-output elasticity – Uneven and volatile economic growth since 2008 and its impact
- n job creation
– Educational Attainment – Aspirations – Returns to investment in education and skill or perceptions – Skill Gap
- New Skills at Work India (NSAWI)
– Program Description – Objectives – Proposed Themes
LONG RUN
Long-run Challenge: Young Population
15.0 5.0 5.0 15.0 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+
2001
Female Male 15.0 5.0 5.0 15.0 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+
2011
Female Male
Source: Census
Long-Run Challenge: Demographic Opportunity
Source: Bloom, D. E. (2011). Population Dynamics in India and Implications for Economic Growth. Harvard Initiatives for Global Health Series Working Paper No. 65. www.harvard.edu
2030 2010
MEDIUM RUN Low employment output elasticity
Decline in output elasticity of employment
Source: Basu, D. and D. Das (2016). Employment Elasticity in India and the US, 1977-2011: A Sectoral Decomposition Analysis. Economic and Political Weekly. Volume L1. No. 10. March 5.
MEDIUM RUN Job Creation Post 2011
But what about post 2011, a time
- f business uncertainty
- 4
- 2
2 4 6 8 10 20 40 60 80 100 120 140 160 180
IIP and NCAER Business Confidence Index, January 2011 to January 2015
BCI IIP%YOY
Source: Bhide and Bhandari (2015) from NCAER BES Surveys
Labour Markets show few signs
- f movement
10 20 30 40 50 60 70 80 90
Percentage of Respondents: Changes in Labour Employed over the Last Three Months, January 2007 to January 2016
No change in skilled labour employed over the last three months Increae in Skilled labour employed over the last three months No change in unskilled labour employed over the last three months Increase in unskilled labour employed over the last three months
Source: NCAER BES Surveys
And hiring has been weak
20 40 60 80 100
Percentage of Respondents: Expected Changes in Labour Employed over the Next Six Months, January 2007 to January 2016
No expected change in skilled labour employed over the next six months Expected increase in skilled labour employed over the next six months No expected change in unskilled labour employed over the next six months Expected increase in unskilled labour employed over the next six months
Source: NCAER BES Surveys
MEDIUM RUN Educational Attainment
76% literate and..
Distribution of Literate Population as per Education Level, 2011
Literate but below matric/secondary Matric/secondary but below graduate Technical diploma or certificate not equal to degree Graduate and above other than technical degree Technical degree or diploma equal to degree or post-graduate degree Source: Census 2011
86.7% main workers, 77.4% marginal workers literate and..
Distribution of Literate Main Workers as per Education Level, 2011
Literate but below matric/secondary Matric/secondary but below graduate Technical diploma or certificate not equal to degree Graduate and above other than technical degree Technical degree or diploma equal to degree or post-graduate degree Source: Census 2011
MEDIUM RUN Aspirations
Education Aspirations of Chief Wage Earners
All-India Distribution of CWE Satisfied illiterate 26.8 42.1 literate but without formal schooling 3.6 40 up to 4th standard 8.3 44.6 primary (completed 5th–7th) 15.5 48.4 middle(completed 8th–9th) 16.2 51.9 matric (completed 10th–11th) 14.3 62.5 higher secondary (12th) 6.8 67.2 technical / diploma/ vocational 1.2 81.4 graduate 5.1 83.7 post–graduate 1.7 87.7 professional & higher research degrees 0.6 95.4 Total 100 53.1 Source: NCAER-NSHIE 2010-11
Aspiration for a Graduate degree dominates
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 illiterate literate but without formal schooling up to 4th standard primary middle matric higher secondary
Aspired Education level of Chief Wage Earners without a graduate/technical degree: All India, %
technical / diploma/ vocational graduate/professional and above
61.% of CWEs are working in
- ccupations of their choice
5 10 15 20 25 30 35 40 Aspiration for Grade 4 Job with Regular Salary: Skilled vs. Unskilled (all-India), % Regular salary - Grade 4 Unskilled Regular salary - Grade 4 Skilled
Source: NCAER-NSHIE 2010-11
Returns to investment in education
and skill or perceptions
- Bhandari and Bordoloi (2006)
– Greater levels of education increase both the likelihood of being employed as well as the income earned from work. – Returns from elementary (primary and middle) education are quite low. – Women, lower social groups, rural residents, non-English speakers have both significantly lower incomes and a lower likelihood of being employed.
- Azam, Chin and Prakash (2010) using IHDS 2004-05 show that
males who can speak fluent English earn a wage rate of Rs. 42 per hour as compared to a wage of Rs. 10 per hour for a non-English speaking male. The respective wage rates for females are Rs. 33 and
- Rs. 6 per hour.
- The Case of Delhi
Returns to investment in education
and skill or perceptions
- Delhi
Distribution of CWE Satisfied illiterate 7 66.3 literate but without formal schooling 1.6 64 up to 4th standard 2.1 80.2 primary (completed 5th– 7th) 8.1 77.7 middle(completed 8th–9th) 13.2 80.5 higher secondary (12th) 14.3 93.5 technical / diploma/ vocational 1.4 96.6 Total 100 88.6
Source: NCAER-NSHIE 2010-11
Skill Gap
- 24 Priority Sectors identified
- Employment Base in 2013: 461.1 million
- Projected employment by 2022: 581.89 million
- Incremental HR requirement: 120.79 million
- Recognition of Prior Learning , reskilling, upskilling and skilling of
the existing workforce especially below 45 years of age: 298.25 million
- Skilling for new entrants 2015-22: 104.62 million
- Total skilling requirement: 402.87 million
Source: National Policy for Skill Development and Entrepreneurship 2015
Program Description
- 2 years and 3 phases
- Phase 1: A Review
– Literature – Secondary Data Analysis including Census, NSSO, IHDS and NSHIE, MHRD, DISE etc. – Sampling strategy
- Phase 2: Baseline survey of skills in Delhi of education, employment
and employability – Why Delhi?
- Mix of Manufacturing and Services in the NCR Region
- Phase 3: Baseline survey of skills of Urban India
Program Objectives
- Baseline of skills based on a large nationally representative survey
– Employers Survey – Employees
- Need to measure cognitive skills, socio-emotional skills, and job-
relevant
- Potentially benchmark India against other countries
- Identify job-relevant skills and policies and institutions to enhance
job mobility and job matching
NSAWI Proposed Program Themes
- Demand side (Jobs)
– Informal sector – Occupation
- Wage
- Productivity
- Skill shortage & vacancies
- Services & manufacturing sector
– Labour laws & regulation – Job creation
- Entrepreneurship & innovation
- Jobs creation in 24 priority sectors
NSAWI Proposed Program Themes
- Supply side (Education and Employability)
– Migration and commuting – Education & skills
- Cognitive
- Non-cognitive
- Vocational
- Socio-emotional
– Social perception & Inclusiveness
- Gender discrimination
- Socially & geographically disadvantaged, and marginalized
groups – Capacity building and training
- Role of public and private sector
- Sources of funding
NSAWI Proposed Program Themes
- Market Mechanism
– Macro Factors – Signalling and screening – Apprenticeship – Guidance and counselling – Life-long learning – Role of Public and Private
- And?