Income of skilled and unskilled worker

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  • 1. Presented By: Shree Prasad Devkota & Shiba Bagale 12/18/2014 Income of Skilled & Unskilled Worker: 1
  • 2.  Introduction: Skilled & Unskilled worker  Discourse in skilled and unskilled human resources  Vicious cycle of discrimination  Nepal's Perspectives  Some issues  Challenges  Conclusions  References 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 2
  • 3.  Skilled worker-  who has special skill, training , knowledge and usually required ability in work  Who is working independently, effectively and turning out accurate work  Unskilled worker-  a segment of a work force associated with a low skill level for the human capital  Low educational level and small wages 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 3
  • 4.  The expansion of trade in labour-intensive goods has put downward pressure on unskilled wages in the traded sector (Wood, 1994).  The rise in skilled wages is the result of skill- biased technical change occurring in developed countries (Bound and Johnson 1992; Krueger 1993; Bell 1996; Goldin and Katz 2008) 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 4
  • 5. 12/18/2014 5 Current Job Discrimination Lower Wage Lower Human Capital Investment Unemployment Lower Skill Level Less Job Experience Pre-market Discrimination
  • 6.  Fixation of minimum wages in Nepal started only since 1965  Highly skilled workers got 181.25 % more wage in 1965, 13.67% in 2003 (MoL,2003)  75% Nepalese worker are unskilled and 25% labour are semi-skilled(FNCCI,2010)  Out of them; around 80 % are from 20 – 30 years and 75% have not even completed their school education(FNCCI,2010).  Concept of Technical Education emerged-CTEVT 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 6
  • 7. Purpose  to provide individuals with the skills and knowledge needed to succeed in the labor market and  to help meet skilled human resource requirements of national development as well as meeting employers’ needs for trained workers essential to business survival and expansion (CTEVT,2006) 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 7
  • 8. Categories of workers No of Workers Trained Untrained Highly Skilled 1512 19.4 80.6 Skilled 5859 7.9 92.1 Semi Skilled 9072 3.4 96.6 Unskilled 2457 0.4 99.6 Total 18900 31.1 68.9 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 8 FNCCI(2010)
  • 9.  Does more education always lead to a better job/skill?  What skills and attitudes do future workers need to learn?  How should work skills and attitudes be taught?  Only getting minimum wage(Rs. 8000) is satisfactory? 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 9
  • 10.  Wages and other benefits are not compatible with increasing productivity and overall economic development of the country  The wage is not reviewed periodically  Wages not as per the global market system  Enhancing capacity of workers, expanding training and skill to increase competitive capacity as demand  (ILO) Convention No. 143 and 97 are not implemented properly  Unstable government 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 10
  • 11.  Only fixation of wages cannot maintain healthy industrial relations  Regular monitoring and implementation of wages is important  Lack of related information, opportunities and employment has resulted workers to go abroad  Urgent requirement of the linkage between human resources and employment  Technical and vocational trainings should be given more emphasis to fulfill the global demand of skilled workers 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 11
  • 12. Bell, B. (1996), Skill-biased technical change and wages: evidence from a longitudinal data set,Discussion Paper No. 8, The Labour Market Consequences of Technical and Structural Change, CEP, LSE, and IES, Oxford. Bound, J. and G. Johnson (1992), ‘Changes in the structure of wages in the 1980s: an evaluation of alternative explanations’, American Economic Review, 82, 3, pp. 371–392. CTEVT (2006). TEVT Policy Framework. Sanothimi, Bhaktapur: CTEVT. FNCCI (2010). Industrial Relations and Enterprise Economic Survey Nepal.Kathmandu:Author. Hall, R.E. & Lieberman,M.(2005) Introduction to Economics. Retrieved from Kreuger, A. B. (1993), ‘How computers have changed the wage structure: evidence from microdata, 1984–1989’, Quarterly Journal of Economics, 108, 33–60. Ministry of Labor and Transportation Management and International Organization on Migration (2010). Foreign Employment, Remittance and Its impact on Nepali economy. Kathmandu: Author. Wood, A. (1994), North–South Trade, Employment and Inequality: Changing fortunes in a skilldriven world, Clarendon Press, Oxford. 12/18/2014 Income of Skilled & Unskilled Worker: Bagale Shiba 12
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