Wage returns to English language and technical skills in India: An inter-occupational disparity

Abstract

Abstract This study examines the wage returns to education, English language skills and the computer skills across various occupations in India, and analyses how the returns vary across gender, rural urban sector, age group, caste, and wage structure within each occupation. Respondents are classified into four important occupational groups such as professionals and executives, farmers and related workers, production related workers, and service-related workers. Using selectivity correction methods, the study finds that the returns to linguistic ability, computer skills and education are high for the professionals and executives and service-related workers. The study also found significant inter-occupational variation in returns to linguistic and computer skills by gender, rural/urban area, caste and across wage structure. The findings of the study also proves that the linguistic and technical skills complement the education and experience across different job categories in India. Higher returns to English skills accrue more to the educated workers across the occupations and such impacts are more in the case of professional and service sectors. The study emphasises on the importance of extending education and imparting skills to people in order to reduce the labour market discriminations as the education and skills have a profound impact on enhancing the wage earnings irrespective of the socio-demographic backgrounds of the people. The study also shows that, pursuing education and acquiring skills are real investments as they ensure better returns regardless of the job categories. JEL Classification I 24 · I 26 · J 01 · J 24 · J 31 · J 46