Horizontal Skill Mismatch in Formal VET and its Impact on Wages: A Causal Study in India

Proceedings of the 8th International Conference on Advanced Research in Education

Year: 2025

DOI:

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Horizontal Skill Mismatch in Formal VET and its Impact on Wages: A Causal Study in India

Urgen Dukpa, Dr. Falguni Pattanaik

 

ABSTRACT:

Vocational education and training (VET) have garnered widespread attention as an instrument to overcome the global skill challenge. However, it’s specificity has both pros and cons attached to it. While it equips individuals with the necessary skills, those skills may quickly become outdated. One potential issue related to this could be mismatch between the possessed skills and those required by jobs, referred to as “horizontal skill mismatch”. Hence, the main focus of this study is to examine the degree of horizontal skill mismatch in formal VET, and its impact on wages. To achieve the desired objectives, causal analysis technique has been employed on 2021-22 (Periodic Labour Force Survey) PLFS data. The finding from the study exhibit incidence of horizonal skill mismatch across various fields of formal VET. Further, a negative impact on wages has also been observed from the study.

keywords: Curriculum practice; Early Childhood Care and Education; Mathematics, Play-based learning; Practitioners