Massive education investments in India lead to unequal labor market impacts.
Large-scale education reforms in India have both positive and negative effects on earnings. A study found that for every year of education, earnings increase by 13.4%. However, the overall impact is reduced by 6.6 percentage points due to general equilibrium effects in the labor market. This means that while unskilled workers benefit from the reforms, skilled workers may see a decrease in their earnings.