Indian economy shows high levels of growth and per capita income in recent years accompanied by an unprecedented shift of labour from agriculture to non-agriculture during the last decade. Reallocation of labour from ‘traditional’ to ‘modern’ segments in an economy having large surplus...

Increasing returns to skill is often attributed to the rising relative demand for skilled workers driven by advancement in skill-complementary technology. In the context of India this paper argues that fluctuations in skill-premia in different sectors are primarily because of the shift in the...