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Local Labor Markets and Child Learning Outcomes in India

Author

Listed:
  • Tsaneva Magda

    (Department of Economics, Clark University, 950 Main Street, Worcester, MA, 01610, USA)

  • Balakrishnan Uttara

    (IMPAQ International, Columbia, MD, 21044, USA)

Abstract

This paper uses data from rural India to study the relationship between local labor market opportunities and child education outcomes. We construct a Bartik index as a measure of exogenous changes in district-level labor demand and find that an increase in predicted overall employment growth is associated with higher years of education and better test scores for both boys and girls of primary school age. The effects on test scores of older boys are smaller and less statistically significant. Older girls, however, do benefit from better labor market opportunities. We do not find evidence for changes in school quality or district-level investment. Instead, we find support for increases in household education spending, possibly because of overall higher wages, or re-allocation of resources.

Suggested Citation

  • Tsaneva Magda & Balakrishnan Uttara, 2021. "Local Labor Markets and Child Learning Outcomes in India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(2), pages 723-750, April.
    • Handle: RePEc:bpj:bejeap:v:21:y:2021:i:2:p:723-750:n:13
    DOI: 10.1515/bejeap-2020-0281
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    References listed on IDEAS

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    More about this item

    Keywords

    labor market conditions; test scores; India;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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