ABSTRACT
This chapter explores the question of whether general education or vocational education fetches adequate return in the manufacturing and industrial sector of Indian labour market. Undertaking a state-wise analysis, the chapter examines whether the level of industrialization of any state can partially explain the extent of over-education in that region. Making a comparative analysis of returns to formal vocational training vis-à-vis the size of either the industrial or manufacturing sectors, the chapter provides policy implication for suggesting that formal vocational training may be a good alternative to general education and could reduce over-education in states that are less industrialized and are in transition.
