Private Investment in Education and Linkage to Future Employment in India: Will the Pandemic Take its Toll?

Abstract

Pandemic and online learning have added to barriers to education. Lack of digital access, difficulty in communication with teachers and lack of peer support create major hurdles in learning for a large proportion of the student population. New entry barriers to better jobs, level and quality of higher education, will add to existing social barriers of gender, caste and nepotism. This will perpetuate a vicious cycle of low education and low incomes. In this paper, we investigate whether there is a threshold of level of education for better jobs in India? We find that higher secondary education is a threshold required for entry into good jobs. We observe increasing returns to private investments in higher levels of education and higher returns to education in the formal sector jobs compared to the informal sector. Will deficits in education during the pandemic reduce investments in education? We study these issues mainly using secondary data from the National Sample Office (NSO). The purpose of this short paper is to build research hypotheses regarding the relation between investment in education and employment, which we highlight in the conclusion.