Evaluating India's Subsidy Employment Strategy for New Entrants

Government's Initiative to Subsidize Employment

The Government of India's plan to subsidize employment for inexperienced workers comes with theoretical and empirical support.

Goals of the Employment Subsidy Program

• Provide social security and increase job prospects for disadvantaged individuals.
• Offer work experience and income support.
• Close the skilling gap for entry-level workers.

Challenges Ahead

1. Questions regarding job creation assumptions.
2. Adhering to formal economy requirements.
3. Addressing the current economic conditions.

Conclusion

While this employment subsidy initiative can potentially lead to new opportunities, its success will largely depend on how effectively it can address the core challenges associated with the formal job market in India.