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Does the Labour Market Explain Lower Female Schooling in India?

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Geeta Gandhi Kingdon

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Abstract

Labour market discrimination against women and parental discrimination against daughters are two of the most commonly cited explanations of the gender gap in education in developing countries. This study empirically tests the labour market explanation for India using household survey data collected in urban Uttar Pradesh in 1995. It estimates workforce participation functions and selectivity-corrected earnings fluctuations, and calculates the rates of return to education for the two sexes. Using the Blinder-Oaxaca method, the gross gender difference in earnings is decomposed into the part that is explained by men and women's differential characteristics and the part that is due to labour market discrimination. The results reveal that there is substantial omitted family background bias in the estimates of returns and that, contrary to received wisdom, the rates of returns to education rise by education level. The analysis suggests that, as well as overall labour girls face significantly lower economic rates of returns to education than boys.

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Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Development Economics Papers with number 01.

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Date of creation: Jan 1997
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Handle: RePEc:cep:stidep:01

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Related research
Keywords: Returns to education; gender; labour force participation; earnings function; selectivity correction; India.;

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References listed on IDEAS
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  1. Dreze, J. & Srinivasan, P.V., 1996. "Poverty in India: Regional Estimates, 1987-8," Papers 129, Indira Gandhi Institute of Development Research-.
  2. Greenhalgh, Christine A, 1980. "Male-Female Wage Differentials in Great Britain: Is Marriage an Equal Opportunity?," Economic Journal, Royal Economic Society, vol. 90(363), pages 751-75, December. [Downloadable!] (restricted)
  3. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  4. Schultz, T.P., 1990. "Returns To Women'S Education," Papers 603, Yale - Economic Growth Center.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  6. Banerjee, Biswajit & Knight, J. B., 1985. "Caste discrimination in the Indian urban labour market," Journal of Development Economics, Elsevier, vol. 17(3), pages 277-307, April. [Downloadable!] (restricted)
  7. Haddad, Lawrence & Hoddinott, John & Alderman, Harold & DEC, 1994. "Intrahousehold resource allocation : an overview," Policy Research Working Paper Series 1255, The World Bank. [Downloadable!]
  8. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
  9. Sahn, David E. & Alderman, Harold, 1988. "The effects of human capital on wages, and the determinants of labor supply in a developing country," Journal of Development Economics, Elsevier, vol. 29(2), pages 157-183, September. [Downloadable!] (restricted)
  10. Kingdon, Geeta, 1996. "The Quality and Efficiency of Private and Public Education: A Case-Study of Urban India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 57-82, February.
  11. Rosenzweig, Mark R & Schultz, T Paul, 1982. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Child Survival in Rural India," American Economic Review, American Economic Association, vol. 72(4), pages 803-15, September. [Downloadable!] (restricted)
  12. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
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  13. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-46, December. [Downloadable!] (restricted)
  14. Behrman, Jere R & Wolfe, Barbara L, 1984. "The Socioeconomic Impact of Schooling in a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 296-303, May. [Downloadable!] (restricted)
  15. Appleton, Simon & Hoddinott, John & Knight, John, 1996. "Primary Education as an Input into Post-primary Education: A Neglected Benefit," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 211-19, February.
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