Do High-Premium Fields Buffer Labor Market Shocks? Evidence from India

TL;DR

This paper investigates whether high-premium fields of study in India offer better labor market resilience during COVID-19, finding that advantages emerge gradually over time rather than immediately.

Contribution

It introduces a difference-in-difference approach to analyze the protective effect of high-premium fields during a crisis in the Indian labor market.

Findings

Field-premium advantages did not appear immediately at pandemic onset.

Advantages emerged gradually during later phases of the pandemic.

Workers in higher-premium fields experienced more resilient outcomes over time.

Abstract

Do high-return fields of study provide greater protection in labor market during crises? I construct pre-pandemic premia for major technical fields in India and examine whether workers in higher field-premium fields experience resilient labor market outcomes during COVID-19. Using a difference-in-difference with continuous treatment design, I find that field-premium advantages did not emerge immediately at the onset of the pandemic but through gradual adjustment during later phases.