University of Pennsylvania ScholarlyCommons Publicly Accessible Penn Dissertations 2014 Technical and Vocational Education and Training in India - A Study of Choice and Returns Namrata Tognatta University of Pennsylvania, [email protected] Follow this and additional works at: https://repository.upenn.edu/edissertations Part of the Educational Assessment, Evaluation, and Research Commons, Education Policy Commons, and the Other Education Commons Recommended Citation Tognatta, Namrata, "Technical and Vocational Education and Training in India - A Study of Choice and Returns" (2014). Publicly Accessible Penn Dissertations. 1472. https://repository.upenn.edu/edissertations/1472 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/edissertations/1472 For more information, please contact [email protected]. Technical and Vocational Education and Training in India - A Study of Choice and Returns Abstract India has made remarkable progress and achieved near universal enrollment in primary school education. However, the quality of learning and progress beyond primary education are of concern; nearly 50 percent of fifth graders are unable to read second grade material and retention rates at the secondary level are quite low. The higher education sector has also shown impressive growth but faces several challenges around inequitable access and low quality. Low outcomes at the secondary and higher education levels have resulted in a significant deficit in employable and vocationally trained individuals in the workforce. Evidence shows that just 14 percent of new entrants to the workforce are likely to have a college or graduate degree. Research also shows that over the long-term low outcomes at the secondary and postsecondary levels are likely to translate into low lifetime earnings and well-being. In light of low educational and employment outcomes, policy in India has focused on skill development through the technical and vocational education and training (TVET) sector. The primary objective of these policies is to significantly improve the rate at which youth and young adults participate in these programs. However, there is limited research evidence on TVET in India. This dissertation addresses the need for empirical evidence on TVET to enable the policy dialogue on meeting the country's education and training challenges. Specifically, it examines the role of individual, household and macro-level factors in human capital investment decisions, especially as those might relate to participation in vocational education and training. Since the expected returns to education and training are a key determinant of investment decisions, the dissertation examines the economic returns to vocational education and training in India. Finally, the dissertation examines the impact of secondary-level vocational education on high school completion rates and postsecondary enrollment among participants. Large-scale secondary and primary data are used in empirical models to address the questions posed above. The findings thus generated present reliable, generalizable estimates that have the potential to inform the future direction of policy in vocational education and training in India. The findings also identify groups differentially affected by current policies and can thereby be used to address inequitable access to and stratification in education and training programs in India. Degree Type Dissertation Degree Name Doctor of Philosophy (PhD) Graduate Group Education First Advisor Rebecca A. Maynard Keywords India, Instrumental variables, Propensity score matching, Skill development, Survey methods, TVET Subject Categories Educational Assessment, Evaluation, and Research | Education Policy | Other Education This dissertation is available at ScholarlyCommons: https://repository.upenn.edu/edissertations/1472 TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN INDIA: A STUDY OF CHOICE AND RETURNS Namrata Tognatta A DISSERTATION in Education Presented to the Faculties of the University of Pennsylvania in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy 2014 Supervisor of Dissertation: _________________________________________ Rebecca A. Maynard, University Trustee Professor of Education and Social Policy Graduate Group Chairperson: _________________________________________ Stanton E. F. Wortham, Professor of Education Dissertation Committee: Rebecca A. Maynard, University Trustee Professor of Education and Social Policy Robert Boruch, University Trustee Chair Professor of Education and Statistics Devesh Kapur, Associate Professor of Political Science Subha Mani, Assistant Professor of Economics TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN INDIA: A STUDY OF CHOICE AND RETURNS COPYRIGHT 2014 Namrata Tognatta DEDICATION To my parents, whose hard work and commitment inspires me to do better. To my sister and role model. To Jonathan. iii ACKNOWLEDGEMENTS This dissertation was possible because of the guidance and support provided by many over the past 5 years and I am indebted to them all. My committee has been instrumental in my development as a research scholar through the process of this dissertation and my time as a Ph.D. student. My deepest gratitude to Becka for giving me the opportunity to pursue my doctoral ambitions and for being a role model to those of us interested in the pursuit of reliable evidence. You have always been an inspiration and I have treasured and valued your mentorship. I had the incredible good fortune of working with Devesh and Subha during my doctoral training. Your insight, feedback and unwavering support has been invaluable. You have encouraged and challenged me to be a better scholar and a better methodologist. Devesh, my association with you and CASI has influenced my development as an India researcher and enriched my doctoral training experience. Subha, working with you has been a tremendous learning experience. I aspire to the kind of dedication and expertise you bring to your work and I deeply value our research partnership and friendship. My sincerest gratitude to Bob for never letting me lose sight of the big picture, for always being available with advice and encouragement, and being a continuous source of confidence. I would also like to thank Professor Jon Supovitz, Henry May and Philip Sirinides at CPRE for giving me various research opportunities that allowed me to hone my research skills and grow as an applied researcher. Henry and Phil, I am grateful for the time you invested in training me and responding to numerous methodological questions. iv My friends and colleagues at Penn have been a tremendous source of support. I cherish our friendship and the positive energy you always bring in to my life. Finally, this research would not have been possible without the financial support provided by Toby Linden and Michelle Neuman at the World Bank, Sunanda Mane at Lend-a-Hand-India, the TRIPS team in Bombay and the Education Policy Division at Penn GSE. Thank you for enabling me to see this research endeavor to fruition. The research reported here was supported in part by the Institute of Education Sciences, U.S. Department of Education, through Grant #R305B090015 to the University of Pennsylvania. The opinions expressed are those of the authors and do not represent the views of the Institute or the U.S. Department of Education. v ABSTRACT TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN INDIA: A STUDY OF CHOICE AND RETURNS Namrata Tognatta Rebecca A. Maynard India has made remarkable progress and achieved near universal enrollment in primary school education. However, the quality of learning and progress beyond primary education are of concern; nearly 50 percent of fifth graders are unable to read second grade material and retention rates at the secondary level are quite low. The higher education sector has also shown impressive growth but faces several challenges around inequitable access and low quality. Low outcomes at the secondary and higher education levels have resulted in a significant deficit in employable and vocationally trained individuals in the workforce. Evidence shows that just 14 percent of new entrants to the workforce are likely to have a college or graduate degree. Research also shows that over the long-term low outcomes at the secondary and postsecondary levels are likely to translate into low lifetime earnings and well-being. In light of low educational and employment outcomes, policy in India has focused on skill development through the technical and vocational education and training (TVET) sector. The primary objective of these policies is to significantly improve the rate at which youth and young adults participate in these programs. However, there is limited research evidence on TVET in India. vi This dissertation addresses the need for empirical evidence on TVET to enable the policy dialogue on meeting the country’s education and training challenges. Specifically, it examines the role of individual, household and macro-level factors in human capital investment decisions, especially as those might relate to participation in vocational education and training. Since the expected returns to education and training are a key determinant of investment decisions, the dissertation examines the economic returns to vocational education and training in India. Finally, the dissertation examines the impact of secondary-level vocational education on high school completion rates and postsecondary enrollment among participants. Large-scale secondary