Academic specialisation and returns to education : Evidence from India

Abstract

We study returns to academic specialisation for Indian corporate sector workers by analysing cross-sectional data on male employees randomly selected from six large firms. Our analysis shows that going to college pays off, as it brings significant incremental returns over and above school education. However, the increase in returns is more pronounced in the specialisations of management and engineering, and less so in the specialisations of science, arts and commerce. Some of the less attractive specialisations, such as commerce and science, tend to make up by rewarding progression from Bachelors to Masters. Short-course diplomas are also rewarding.