Educational Expansion and Labour Market Realities: An Analysis of Employment Quality in India

Abstract

Despite sustained economic growth and rising levels of educational attainment, the quality of employment in India has either not improved or has deteriorated. This paper examines the link between education and employment quality using nationally representative Government of India data for 2009-10 and 2018-19. The study is based on crucial dimensions of decent work as proposed by the International Labour Organization. The findings indicate a weak and uneven relationship: while higher education levels are associated with better job quality, a significant share of educated workers remains trapped in informal and insecure employment. In addition, there exists a huge gender gap, with educated women more likely to be in secure employment than their male counterparts, potentially reflecting selective labour market participation. The persistence of low-quality jobs among the educated points to a structural disconnect between human capital formation and labour market absorption. The paper underscores the need for policy interventions that go beyond educational expansion to address the deteriorating quality of employment and to promote more inclusive and equitable labour market outcomes.