Wednesday, June 20, 2007

Crisis on skilled labour?

There is a chorus of protest amongst employers in the country about the high price of skilled labour and high staff turnover. Some people think that India's deep public policy mistakes on higher education will greatly hinder GDP growth. I like to point out that over the twenty year period 1987-2007, the higher education got worse (since salaries in universities fell behind those in the private sector), but GDP tripled all the same. There is clearly much more going on in achieving skilled labour than good universities. I wrote an article in Business Standard today titled Crisis on skilled labour? on this subject, where I offer an optimistic view about how the present crisis on skilled labour might play out.


  1. yes, I agree with your conclusions in the article but not for the reasons outlined. It will be because of a market responce to government failures.notice the explosion of finishing schools, corporate tie-ups with universities, corporate universities etc.
    now, the question that needs to be asked in: could this all have been done better and cheaper? probably. if the government took advantage of its natural monopoly in providing such services. india, especially the underprivilaged, will be worse off as a result

  2. shah:

    i agree that the crisis doesn't exist but your analysis is wrong/

    the demand for workers will not be there ...
    last 4 yrs' unprecedented liquidity made even a lowly
    daroowalla in dadar a hot commodity and panwelwallas swooned at their decrepit chawls shooting up in value and ghatis marvel at mumbai possible evolution into one of the world's big financial center..
    And suddenly, ganeshji takes it all away
    in india, they would marvel at how quickly things had turned


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