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Research Journal of Humanities and Social Sciences
Year : 2018, Volume : 9, Issue : 4
First page : ( 915) Last page : ( 923)
Print ISSN : 0975-6795. Online ISSN : 2321-5828.
Article DOI : 10.5958/2321-5828.2018.00154.7

Skill Efficiency Comparison: Government Vs Private Sector

Singh Chandramani P1,*, Dr. Shilu Viral M2

1Research Scholar-Management, Gujarat Technological University, Ahmedabad, Gujarat

2Reaserch Supervisor, Gujarat Technological University, Ahmedabad, Gujarat

*Corresponding Author Email: cpsingh3@gmail.com

Online published on 30 January, 2019.


This paper compares skill efficiencies between government sector and private sector enterprises in India for the period 2010–11 to 2015–16. The results establish that enterprises owned by the central government and state governments are less skill efficient than mixed or private sector enterprises, while mixed sector enterprises are less efficient than those in the private sector in terms of Skill efficiency. The results contradict extant evidence finding no performance differences between government-owned and private firms in India. There have, however, been inter-temporal skill efficiency gains for the sector as a whole, perhaps resulting from reforms undertaken towards improving government-owned enterprises’ skill performance with reference to Govt Initiative of Skill India and Make in India: The employment share of the state-owned and the mixed sectors has risen and the share of productive capital invested in state owned and mixed sectors was at 58 percent, in 20010-11. By 201516, this share has risen to 68 percent. Though fluctuations have occurred, the share remained at 66 percent, implying that two thirds of the capital invested in Indian industry is owned by the state-owned and mixed sectors. In Section 2 theory and evidence with respect to performance assessment are discussed. Thereafter, in Section 3 the empirical analyses are described. Data and estimation issues connected with the paper are discussed. The analysis is based on a comparison of skill efficiency patterns for time-periods between 2010–11 and 2015–16, which is the last year for which data have been taken from the Central Statistical Organization of the Government of India, for four sectors of Indian Industry in respect of which data have been reported by ownership type viz. Central government-owned sector; the state government-owned sector; the mixed sector; and the private sector. Section 4 discusses the results that are obtained from the empirical analyses, and Section 5 concludes the paper.


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