The impact of education on labour market outcomes is analysed using data from various
rounds of the National Sample Survey of India. Occupational destination is examined using
both multinomial logit analyses and structural dynamic discrete choice modelling. The latter
approach involves the use of a novel approach to constructing a pseudo-panel from repeated
cross-section data, and is particularly useful as a means of evaluating policy impacts over
time. We find that policy to expand educational provision leads initially to an increased takeup
of education, and in the longer term leads to an increased propensity for workers to enter
non-manual employment.