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tate
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ndia
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ivelihoods
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eport
2015
Training providers find the funding from
NSDC soft loan with usually two to three
years moratorium at 6 per cent and equity a
scalable and sustainable fundingmechanism.
With sponsored programmes, the institutes
can turn around in four to five years.
NSDC’s role is appreciated by all the train-
ing providers. A key recommendation they
have is that skill training should be imparted
from schools with a bouquet of courses of
interest to the students. Once a foundation
is laid, acceptance and idea of having a skill
can be built upon.
Impact evaluations of skill training
Two impact assessments of skill training
have been carried out during 2014–15 by
World Bank at the behest of NSDA and
another by Deloitte and Tata institute of
Social Sciences commissioned by NSDC.
An analysis of findings is presented further.
World bank impact evaluation
58, 59
World Bank carried out evaluation of five
largest skill development programmes—
Aajeevika Skills Development Programme
(ASDP), Ministry of Rural Development,
NSDC, STEP-UP, Ministry of Housing and
Urban Poverty Alleviation, RSETI, Ministry
of Rural Development, SDIS of Ministry of
Labour during 2014.
The study was carried out in five states of
Assam, AP, MP, Odisha and Rajasthan. The
study analysed the outcomes, justification
of public investment costs, administrative
aspects that affect delivery and earnings
premium of short duration courses. The
five programmes target different population
groups: two of them focus on rural youth,
one on urban youth, and the remaining ones
cover both. They all prepare the trainees for
wage or self-employment but emphasize one
or the other.
The sample for the study included 2,620
present trainees, 1,979 past trainees, control
group of 2,017 persons, 669 employers and
400 training providers. The key findings of
the study are:
•
Education level of trainees is fairly high
except inRSETI; Less than15per cent have
up to nine years of schooling and others
are with secondary education and above.
Disadvantaged and low income groups are
well represented in all programmes.
•
Eighty-nine per cent of employers in the
sample (
n
= 669) recruit trainees from
one scheme; remaining recruit frommore
than one scheme. Around 35–42 per cent
of employers in the sample hire SDIS or
NSDC trainees; Enterprises are private
(> 90 per cent). Employers are mostly in
the service sectors for most RSETI and
ASDP trainees. For other schemes, 66–77
per cent are in the service sector and 22–31
per cent in manufacturing. Majority of
employers have less than 10 employees.
•
The placement rate of trainees (shortly
after the end of the training period) is
modest: 27 per cent overall, ranging
from 23 per cent to 36 per cent across
programmes, but with substantial
state-wide variations. One or two years
after training, the employment rate
of trainees is not much different: 28
per cent. However, significant labour
market churning has occurred over the
period of one or two years after training:
trainees initially placed have left their
jobs, looking for other opportunities
(or simply quit); others have entered
the labour market later. This strongly
suggests that, although initial placement
facilitates insertion in the labour mar-
ket, it does not ensure a good job match
and sustainability of employment.
•
Andhra Pradesh stands out, with at least
50 per cent placement rate across pro-
grammes (except in SDIS where no train-
ees have reported as received placement
support); MP is second-best performer
58
World Bank, 2015, Skills Development
Programmes in India, Labor Market Impacts and
Effectiveness Findings of an Evaluation Study, March
2015. Key findings.
59
Meky, Muna Salih, 2015, Labor Market Impacts
and Effectiveness of Skills Development Programmes
in India. Washington, D.C.: World Bank Group.
Available at
/
en/2015/04/24616611/labor-market-impacts-effective-
ness-skills-development-programs-india
