Browsing by Author "Kailash Chandra Pradhan"

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Decomposing the Certified and Uncertified Skill Wage Gap for Production Workers in India
(Springer, 2024) Bhanu Pratap Singh; Akash Yadav; Kailash Chandra Pradhan
Due to the lower capacity of formal learning institutions, informal learning is the prominent source of learning to skill a larger population in India. Still, many skilled workers in India face the problem of lower wages and difficulty finding employment opportunities because of skill certification. The present study examines the impact of skill certification on monthly wages using augmented Mincer wage equations. Oaxaca-Blinder decomposition is employed to study wage differentials between certified and uncertified skill workers. The empirical findings suggest that workers’ characteristics such as skill certification, extended training period, superior occupational status, permanent job tenure, higher education level, membership in trade unions, and job experience help them earn higher monthly wages. The wage gap between certified and uncertified skill production workers is also observed based on skill certification. In addition, the wage gap is reduced by characteristics such as the long duration of the training, membership in trade unions, and job experience. However, uncertified skill workers face wage discrimination with rising age. In India, it is crucial to reduce wage differential due to skill certification to improve competitiveness, efficiency, and productivity in the labor market. Therefore, the government should promote skill development and certification of skills acquired through informal learning to achieve developmental goals. © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2023.
Institutional quality and economic performance in South Asia
(John Wiley and Sons Ltd, 2022) Bhanu Pratap Singh; Kailash Chandra Pradhan
The study empirically examines the impact of institutional quality on economic performance in South Asia for the period 2002 to 2016. The study employed six World Bank Governance indicators and constructed a composite governance index to measure institutional quality. Per capita real GDP is taken as a measure of economic performance. The study uses conventional determinants of growth such as labor supply and physical capital stocks. Fixed effects regression and Fully Modified Ordinary Least Square (FMOLS) methods are employed to examine the long-run equilibrium relationship. Dumitrescu-Hurlin (2012) panel causality test is used as a short-run diagnostics test for the long-run relationship. The empirical results reveal institutional quality has a positive impact on economic performance in the long-run whereas, governance indicators such as control of corruption, government effectiveness and political stability are vital for better economic performance in South Asian countries. The short-run diagnostics results reveal that institutional quality has no impact on economic performance. On the other side, economic performance helps to improve intuitional quality in the short-run. Hence, in the short-run South Asian countries should focus on non-good governance indicators such as effective taxation, health, education, infrastructure and skill development to achieve good governance and better economic outcome in the long-run. © 2020 John Wiley & Sons Ltd