Education spillovers: empirical evidence in rural India
AbstractPurpose – Empirical evidence of education spillovers in developing countries and rural contexts is scarce and focuses on specific channels. The purpose of this paper is to provide evidence of such spillovers in rural India, by evaluating the overall impact of neighbours' education on farm productivity. Design/methodology/approach – The author uses cross-sectional data from the India Human Development Survey of 2005. Spatial econometric tools are used to take into account social distance between neighbours. To be sure that the author's definition of a neighbourhood does not drive the results, three different definitions of neighbours were tested. Findings – The results show that education spillovers are substantial: one additional year in the mean level of education of neighbours increases households' farm productivity by 2 per cent. These findings are robust to changes in specification. Research limitations/implications – The results open the way to further research. In particular, this paper does not explore the channels through which this spillover effect happens. Practical implications – This paper confirms the choice of improving education in developing countries: giving a child education will certainly provide him/her with greater revenues and it may also provide his/her neighbours with greater revenues. The paper shows the importance for policy makers of taking into account education spillovers and policies' complementarity when facing political trade-offs. Originality/value – This paper is one of the few to underline that education externalities do not only exist in urban contexts and education spillovers do not only occur between workers of the manufacturing and service sectors. There are also spillovers in sectors considered as more traditional, such as agriculture. JEL classification: D1, I2, O1, R3
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Indian Growth and Development Review.
Volume (Year): 5 (2012)
Issue (Month): 1 (April)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- I2 - Health, Education, and Welfare - - Education
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
- Pedro S. Martins, 2004.
"Firm-Level Social Returns to Education,"
CRIEFF Discussion Papers
0404, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Pedro S. Martins & Jim Jin, 2008. "Firm-Level Social Returns to Education," Working Papers 9, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Martins, Pedro S., 2004. "Firm-Level Social Returns to Education," IZA Discussion Papers 1382, Institute for the Study of Labor (IZA).
- George Psacharopoulos & Harry Anthony Patrinos, 2004.
"Returns to investment in education: a further update,"
Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
- Dominique Goux & Eric Maurin, 2006.
"Close Neighbours Matter: Neighbourhood Effects on Early Performance at School,"
CEE Discussion Papers
0068, Centre for the Economics of Education, LSE.
- Dominique Goux & Eric Maurin, 2007. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," Economic Journal, Royal Economic Society, vol. 117(523), pages 1193-1215, October.
- Goux, Dominique & Maurin, Eric, 2006. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," CEPR Discussion Papers 5682, C.E.P.R. Discussion Papers.
- Goux, Dominique & Maurin, Eric, 2006. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," IZA Discussion Papers 2095, Institute for the Study of Labor (IZA).
- Dominique Goux & Eric Maurin, 2006. "Close neighbours matter: neighbourhood effects on early performance at school," LSE Research Online Documents on Economics 19412, London School of Economics and Political Science, LSE Library.
- Moretti, Enrico, 2004.
"Human capital externalities in cities,"
Handbook of Regional and Urban Economics,
in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
- Abhijit Banerjee & Lakshmi Iyer & Rohini Somanathan, 2007.
"Public Action for Public Goods,"
NBER Working Papers
12911, National Bureau of Economic Research, Inc.
- Besley, T. & Case, A., 1994.
"Diffusion as a Learning Process: Evidence from HYV Cotton,"
174, Princeton, Woodrow Wilson School - Development Studies.
- Timothy Besley & Anne Case, 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Working Papers 228, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Conley Timothy G. & Flyer Fredrick & Tsiang Grace R, 2003. "Spillovers from Local Market Human Capital and the Spatial Distribution of Productivity in Malaysia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-47, December.
- LE GALLO, Julie, 2000. "Econométrie spatiale 1 -Autocorrélation spatiale," LATEC - Document de travail - Economie (1991-2003) 2000-05, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
- Mark Rosenzweig & Andrew D. Foster, .
"Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture,"
_068, University of Pennsylvania.
- Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jade Turvey).
If references are entirely missing, you can add them using this form.