Specific Human Capital and Skills in Indian Manufacturing: Observed Wage and Tenure Relationships from a Worker Survey

Abstract

Successive Indian governments have attempted to increase the growth in employment alongside encouraging skill enhancement. Against this background, we empirically explore issues surrounding the investment in specific capital by workers. In particular, we try to discern the presence of specific human capital investment by investigating whether there is a link between tenure and wages and find that there is indeed such a link evident in India. This allows us to infer that it is valuable to have long-term relations between employers and their workers and therefore labour market institutions that support long-term employer–employee relationship need to be encouraged.

How does strategic deviation affect firm performance? The roles of financing constraints and institutional investors

“…Countries can utilize differentiated industrial policies to cultivate factor endowments to gain national competitive advantages (Ge and Liu, 2022). Individuals can establish their own skill expertise and proprietary knowledge in specific fields to enhance their competitiveness in the labor market (Singh et al, 2022). For firms, maintaining proper strategic deviation (SD)which reflects the degree to which their strategies deviate from industry peersmay increase the ability to gain competitive resources and excess returns (Deephouse, 1999;Su et al, 2024).…”

“…Countries can utilize differentiated industrial policies to cultivate factor endowments to gain national competitive advantages (Ge and Liu, 2022). Individuals can establish their own skill expertise and proprietary knowledge in specific fields to enhance their competitiveness in the labor market (Singh et al. , 2022).…”