March 2021
In this study, we have analysed the difference in the PMKVY skilling programme outcomes between the Centrally Sponsored Centrally Managed (CSCM) and Centrally Sponsored and State Managed (CSSM) training programme in the state of Punjab. Our analysis has considered a dataset of 1,67,792 (includes one transgender person) records for the CSCM and 22,494 records for the CSSM programme.
The majority of the trainees in both CSCM and CSSM are either school dropouts or have discontinued their education. Among such trainees, the percentage of trainees in the CSSM scheme completing 11th to 12th standard is higher than the corresponding figure for CSCM.
We have observed that the gender distribution of candidates in both CSCM and CSSM is similar. The percentages of female candidates in CSCM and CSSM schemes are 58.45 and 58.14, respectively. The number for CSCM has improved from what was observed (51.88%) in our PMKVY 1.0 studies3 with a random sample of 2,184 records.
Higher enrolment of female candidates is a positive development because, at a national level, the Female labour force participation rate (FLFPR) has steadily declined from 31.89% in 2005 to 20.34% in 2020, the lowest among the G20 countries4.
In both CSSM and CSCM, a higher percentage of females are either school dropouts or have discontinued their education. It is essential to integrate the school dropouts and those who have discontinued their education into our workforce.
We have studied the impact of skilling on employment from different dimensions. We find that in CSCM, 54.23% of the certified candidates got employed, but a small percentage of the “Not Certified” category got jobs. If the trainees did not get a certificate in the CSCM scheme, they found it difficult to get jobs. Similarly, we have observed a positive impact of “certification” on “jobs” in the CSSM scheme.
Our study shows that candidates’ employment status after completing training is marginally better in the CSSM scheme than in the CSCM scheme. Our analysis indicates that the average wage of candidates going through the CSSM scheme is higher than that of the CSCM scheme. Based on our analysis, we can state with more than 99.99% confidence that for all education levels, the trainees who have gone through the CSSM scheme receive a higher average salary than the ones who have gone through the CSCM scheme. In addition, female trainees have performed better in placement than their male counterparts in both the CSSM and CSCM schemes. On a relative basis, more female trainees in the CSSM programme got placed than their male counterparts (63.22% and 36.78%, respectively). In the CSCM scheme, 50.57% of female trainees got employment versus 44.83% males.
The gender wage gap has been a national-level problem. Our study also shows that the monthly average wage is different for males and females in the CSSM and CSCM schemes. Our analysis suggests that the gender wage gap is higher for CSCM candidates in comparison to the CSSM candidates for all education levels other than Polytechnic and Diploma. In Polytechnic and Diploma, female CSCM candidates earn a higher wage than their male counterparts.
We have also analysed the training, certification, and placement results of the CSSM program as on 2020 March and 2021 March. Our study shows that COVID has very adversely impacted the CSSM program. We have seen a decline in jobs, and female trainees have been very adversely impacted. The percentage of female trainees getting placed has reduced from 63.22% to 39.46%.
We have also analysed the impact of COVID-19 on the CSCM program. We have observed that percentage of candidates placed after COVID-19 has reduced from earlier 48.2% to 19.7%. We see a decline also in the placement statistics of the certified trainees in the CSCM programme. As against earlier (pre-COVID as of March 2020) 54.6%, percentage of “certified’ candidates placed has reduced to 42.1% post-COVID (as of March 2021).
Our study shows that CSSM scheme has a robust inspection process which positively influences the program outcome.
Our study shows that the CSSM scheme has been more impactful through the State Skill Development Missions and their robust skilling ecosystem with the District Administration’s support. The women candidates seem to fare better under the CSSM scheme as far as getting placement and gender wage gap are concerned. Based on the CSSM and CSCM schemes’ comparative analysis, we recommend increasing the share of funds allocation for the CSSM component.
Chandan Chowdhury is a Professor of Operations Management and Information Systems (Practice) at the Indian School of Business (ISB). He is also the Executive Director of the Munjal Institute for Global Manufacturing and the Punj-Lloyd Institute of Infrastructure Management at ISB.
Additionally, Professor Chowdhury serves as a Member of the Board of Governors at IIM Sambalpur and Lamrin Tech Skills University.
Before joining ISB, Professor Chowdhury worked in the corporate sector and was associated with three major multinational companies, where he held positions such as Managing Director and Country Manager. He served Dassault Systèmes for over five years, initially as Managing Director, India Geo, and subsequently as Vice President, Global Affairs.
During his last academic appointment, he was Professor, Dean (Academy), and Chairman of the Board of Research at IIM Mumbai (formerly known as NITIE- National Institute of Industrial Engineering, established as a joint initiative between the United Nations and the Government of India in 1963).
He is passionate about leveraging technology to make the world a better place. He served as an expert panel member at NITI Aayog (National Institution for Transforming India, Government of India), helping to develop the Manufacturing India@2035 roadmap. He is also Chairman of the Technical Committee (Management and Productivity) at the Bureau of Indian Standards.
Professor Chowdhury is currently leading several research projects of national importance, such as ‘A Decade of Infrastructure Development in India: trends and Insights’, ‘Challenges and Opportunities for accelerating MSME’s growth’, ‘Making India a Skill Capital of the World,’ ‘India’s readiness for the 4th and the 5th Industrial revolution,’ and ‘Future of Jobs’.
He holds an MS in Mechanical Engineering from the Budapest University of Technology and Economics, and a PhD from the Hungarian Academy of Sciences and Budapest University of Technology and Economics.
He holds an MS in Mechanical Engineering from the Budapest University of Technology and Economics, and a PhD from the Hungarian Academy of Sciences and Budapest University of Technology and Economics.
