Determinants of Skill Shortages in Indian Firms: An Exploration

Based on primary data collected from 102 firms, located in three metropolises- Mumbai, Bangalore and Hyderabad- and heterogeneous in economic activities, size and year of existence, the authors explore the phenomenon of skill shortage among Management Graduates who are employed in managerial occupation. They describe determinants of skill shortages in these firms. They elucidate that job vacancies that are hard to fill subsume in vacancies having skill shortage that is the subset of general pool of vacancies. The paper shows that a vacancy falling within skill shortage category is sensitive to the nature of vacancy, wage, year of existence and location.