Journal of Economics and Trade

Wage disparities in India remain pronounced across gender, region and type of employment. Women earn substantially less than men in both salaried and casual work, while rural wages lag behind urban earnings. Employment participation has risen in recent years, yet income growth has not been evenly shared. Vocational and technical training has expanded since 2017-18, with participation rising from single digits to more than one-third of the working-age population. Most of this increase has come through non-formal learning, which contributes little to wage mobility because employers do not treat it as a strong credential. Formal training, though limited to less than five percent of workers, is consistently linked with wage gains of around 10-15 percent and stronger employment prospects in sectors with organized demand. Placement alignment, certification systems and equitable access determine the extent of these benefits. Gaps remain particularly wide for women, rural youth and disadvantaged groups who face barriers in accessing quality training. Vocational education can influence wage structures in India when it is formal, demand-driven, inclusive and supported by robust certification and employer trust.