Economic Returns to Higher Education in India An Empirical Study of Employability, Income, and Skills Across Disciplines

Abstract

Higher education is often viewed as an investment that yields economic and social returns in the form of employability, income, and skills. This study examines the economic returns to higher education in India through a comparative analysis across disciplines such as Engineering, Management, Commerce, Arts, and Science. Using survey-based data from 200 graduates, the research explores the relationship between tuition costs, employment outcomes, income distribution, job preparedness, and skill acquisition. The findings reveal that professional programs such as Engineering and Management provide higher employability and income opportunities, albeit with significantly higher tuition fees, whereas Arts and Commerce graduates face lower employment prospects and modest returns. Communication skills, digital competencies, and industry certifications emerged as the most critical drivers of employability across fields. The study concludes that while higher education enhances earning potential and job readiness, the return on investment varies considerably by discipline, raising important implications for students, institutions, and policymakers in aligning curricula with labor market demands.