Disability and Returns to Education in a Developing Country
AbstractIn this paper, we estimate wage returns to investment in education for persons with disabilities in Nepal, using information on the timing of being impaired during school-age years as identifying instrumental variables for years of schooling. We employ unique data collected from persons with hearing, physical, and visual impairments as well as nationally representative survey data from the Nepal Living Standard Survey 2003/2004 (NLSS II). After controlling for endogeneity bias arising from schooling decisions as well as sample selection bias due to endogenous labor participation, the estimated rate of returns to education is very high among persons with disabilities, ranging from 19.4 to 33.2%. The coexistence of these high returns to education and limited years of schooling suggest that supply side constraints in education to accommodate persons with disabilities and/or there are credit market imperfections. Policies to eliminate these barriers will mitigate poverty among persons with disabilities, the largest minority group in the world.
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Bibliographic InfoPaper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-645.
Length: 29 pages
Date of creation: Aug 2009
Date of revision:
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Other versions of this item:
- Lamichhane, Kamal & Sawada, Yasuyuki, 2013. "Disability and returns to education in a developing country," Economics of Education Review, Elsevier, vol. 37(C), pages 85-94.
- I2 - Health, Education, and Welfare - - Education
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-22 (All new papers)
- NEP-DEV-2009-08-22 (Development)
- NEP-EDU-2009-08-22 (Education)
- NEP-HRM-2009-08-22 (Human Capital & Human Resource Management)
- NEP-LAB-2009-08-22 (Labour Economics)
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