Statistical Modelling of Education, Training and Labour Market Outcomes Among Working-Age Indians

Abstract

Education and skill formation are central to labour market inclusion, yet the relationship between schooling, training and employment outcomes in India remains uneven across social and economic groups. The objective was to examine how education level, technical education, and vocational or technical training are associated with labour force participation, work participation, and employment-type-specific earnings among working-age individuals in India. PLFS 2023–24 unit-level data for individuals aged 15–59 were analysed using survey probability weights. Descriptive statistics, chi-square tests, Cramér’s V and four nested survey-design logistic regression models were applied. Regression analysis was conducted only for labour force participation, with models progressively adjusting for education/training, demographic factors, social controls, and State/UT fixed effects. The results showed substantial variation in labour force participation. Male LFPR was 83.52%, compared with 45.20% for females. Rural LFPR was 67.59%, compared with 57.02% in urban areas. Education showed a non-linear participation pattern: diploma/certificate holders had the highest LFPR at 84.33%, while higher secondary respondents had the lowest at 48.52%. Vocational/technical training showed the strongest association with LFPR, with Cramer’s V = 0.421. In the fully adjusted logistic model, technical education remained positively associated with LFPR, while vocational/technical training showed the strongest adjusted association. Earnings patterns differed by worker type: education was strongly rewarded in regular wage/salary work, moderately in self-employment, and weakly in casual daily wage work. The findings suggest that education alone is insufficient for labour market inclusion. Technical and vocational pathways, gender-sensitive employment policy, and employment-type-specific labour strategies improve India's education-to-work transitions and provide a framework for other developing economies.