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Skill Mismatches in Indian Labor Market: Policy Priorities and Challenges Ahead

Indian Journal of Industrial Relations

Volume 49 Issue 3

Published: 2014
Author(s) Name: Sahana Roy Chowdhury | Author(s) Affiliation: Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
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Abstract

This article highlights some major concerns on Indias ability to create a balanced mix of employment and quality employment to embark on a sustainable, balanced and inclusive growth path, where quality signifies productivity contribution. It points out that co-existence of unemployability and skill shortages in certain sectors depicts prevalence of skill mismatches or allocative inefficiency in Indian labor market. Problems and prospects of the steps taken so far to bridge the skill gaps are discussed with a focus on the major challenges ahead such as increasing informalisation. A few international best practices are then mentioned but with a note of caution that there is no one-size that fits-all.

Keywords: N.A.

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