THIRUVANANTHAPURAM: ‘Pre-degree athra mosam degree onnum alla’ (pre-degree is not such a lowly degree) is an iconic dialogue by Sreenivasan from the 1987 Malayalam movie Nadodikattu. This witty one-liner has now proved prophetic, according to a study published by the Gulati Institute of Finance and Taxation.
The marks of a student’s Plus-Two (previously pre-degree) examination carry more weight than their degree grades in determining future earnings, according to the study. It said a 1% increase in Plus-Two marks correlates to a 1.1% increase in monthly earnings. However, there was no substantial evidence suggesting that the marks of an undergraduate degree course significantly influence earnings.
“This points to the importance of early academic performance over later academic achievements in determining income potential,” the study said.
The study, based on state-level data from the India Human Development Survey (IHDS) 2011 and primary data from Kozhikode district in 2021, was conducted by Mallika M G and Sumitha K. While Mallika is an associate professor with the Thunchathu Ezhuthachan Malayalam University, Sumitha is a research scholar with the Zamorin’s Guruvayurappan College. Participants in both surveys were in the 25-40 age group.
The study found that 57.2% of young graduates were employed. Gender disparities were evident, as only 34.8% of female graduates were employed compared to 87.6% of their male counterparts. A striking 56.1% of the female graduates were primarily engaged in household work as against 0.6% of males. A clear gender gap was evident in earnings as well. The average annual earnings for a male was Rs 1,41,875 per year compared to Rs 97,671 for a female.
Surprisingly, caste influences people’s earnings despite the state’s image as a progressive society. Bachelor’s degree holders from the general castes earned more than those from OBC and SC categories. SC graduates earned the least. The average annual income of a graduate in the general category was Rs 1,27,291, OBC Rs 1,26,125 and SC-ST Rs 1,00,158.
Father’s education level is a significant factor influencing a graduate’s earnings, the study said. Children of men having secondary or higher education had considerably higher earnings than those born to others. Also, children of salaried fathers earned more than those whose fathers are engaged in casual work. The study called for an increased focus on handholding first-generation students to bridge the gap.
Another interesting finding was that self-employed women earned more than their male counterparts. The average annual earning of a self-employed woman was Rs 1.25 lakh while it was Rs 94,000 for males. But males had significantly higher earnings in the categories of “regular salaried workers” and “casual workers”.
The study also revealed that higher earnings attract Keralites to government jobs, rather than social status.