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Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India

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Author Info
Yamauchi, Futoshi

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Abstract

"This paper empirically identifies social learning and neighborhood effects in schooling investments in a new technology regime. The estimates of learning-investment rule from farm household panel data at the onset of the Green Revolution in India, show that (1) agents learn about schooling returns from income realizations of their neighbors and (2) schooling distribution of the parents' generation in a community has externalities to schooling investments in children that are consistent with social learning. Simulations show that variations in schooling distributions within and across communities generate through social learning substantial variations in child enrollment rate and average household income. The results suggest that imperfect information hinders investment in human capital." Author's Abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 190.

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Date of creation: 2005
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Handle: RePEc:fpr:fcnddp:190

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Related research
Keywords: Human capital ; Risk ; Social learning ; School enrollment ; technological changes ; Green Revolution ;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Timothy G. Conley & Christopher R. Udry, 2000. "Learning About a New Technology: Pineapple in Ghana," Working Papers 817, Economic Growth Center, Yale University, revised May 2004. [Downloadable!]
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  2. Ellison, Glenn & Fudenberg, Drew, 1993. "Rules of Thumb for Social Learning," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 612-43, August. [Downloadable!] (restricted)
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  3. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Blackwell Publishing, vol. 63(2), pages 237-64, April. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
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  6. Behrman, Jere R., 1999. "Labor markets in developing countries," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 43, pages 2859-2939 Elsevier. [Downloadable!] (restricted)
  7. Besley, Timothy & Case, Anne, 1993. "Modeling Technology Adoption in Developing Countries," American Economic Review, American Economic Association, vol. 83(2), pages 396-402, May. [Downloadable!] (restricted)
  8. Glewwe, Paul, 1996. "The relevance of standard estimates of rates of return to schooling for education policy: A critical assessment," Journal of Development Economics, Elsevier, vol. 51(2), pages 267-290, December. [Downloadable!] (restricted)
  9. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  10. Raquel Fernandez, 2001. "Sorting, Education and Inequality," NBER Working Papers 8101, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
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  1. Wang, Honglin & Reardon, Thomas, 2008. "Social Learning and Parameter Uncertainty in Irreversible Investment----Evidence from Greenhouse Adoption in Northern China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6310, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Futoshi Yamauchi & Sakiko Tanabe, 2008. "Nonmarket networks among migrants: evidence from metropolitan Bangkok, Thailand," Journal of Population Economics, Springer, vol. 21(3), pages 649-664, July. [Downloadable!] (restricted)
  3. Katleen Van den Broeck & Stefan Dercon, 2007. "Social Interactions in Growing Bananas: Evidence from a Tanzanian Village," Discussion Papers 07-08, University of Copenhagen. Department of Economics. [Downloadable!]
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