Human capital development and labour productivity with special reference to Kerala

Abstract

This study investigates the impact of human capital development, specifically focusing on education and health, on employment preferences and labor productivity (earnings) among workers in Kerala, India. Utilizing both secondary data from the India Human Development Survey (IHDS) 2011-12 and primary data collected from Feroke Municipality, the research employs various statistical tools such as the Mincer earnings function, multinomial logistic regression, and Kruskal-Wallis test. The analysis reveals that higher education levels increase the likelihood of salaried employment and lead to better earnings for both regular and self-employed workers. However, casual laborers show minimal earnings improvement with education. Gender disparities in pay are significant across employment sectors, with men consistently earning more than women at all educational levels. Socio-economic status, particularly parental education and family income, significantly influences the educational attainment and health of individuals, which in turn affects their productivity. Caste and employment sector also play critical roles in shaping earnings, with lower castes and casual workers facing notable disadvantages. The study concludes that targeted policy interventions are necessary to address gender pay gaps, improve private sector employment conditions, and promote equitable access to education and opportunities across caste groups.