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Do IT service centers promote school enrollment? Evidence from India

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  • Oster, Emily
  • Steinberg, Bryce Millett

Abstract

Globalization has changed job opportunities in much of the developing world. In India, outsourcing has created a new class of high-skill jobs which have increased overall returns to schooling. Existing evidence suggests education may broadly respond to this change. We use microdata to evaluate the impact of these jobs on local school enrollment in areas outside of major IT centers. We merge panel data on school enrollment from a comprehensive school-level administrative dataset with detailed data on Information Technology Enabled Services (ITES) center location and founding dates. Using school fixed effects, we find that introducing a new ITES center causes a 5% increase in the number of children enrolled in primary school; this effect is localized to within a few kilometers. We show the effect is driven by English-language schools, consistent with the claim that the impacts are due to changes in returns to schooling, and is not driven by changes in population or income resulting from the ITES center. Supplementary survey evidence suggests that the localization of the effects is driven by limited information diffusion.

Suggested Citation

  • Oster, Emily & Steinberg, Bryce Millett, 2013. "Do IT service centers promote school enrollment? Evidence from India," Journal of Development Economics, Elsevier, vol. 104(C), pages 123-135.
  • Handle: RePEc:eee:deveco:v:104:y:2013:i:c:p:123-135
    DOI: 10.1016/j.jdeveco.2013.05.006
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    Cited by:

    1. Adukia, Anjali & Asher, Samuel & Novosad, Paul, 2017. "Educational Investment Responses to Economic Opportunity: Evidence from Indian Road Construction," MPRA Paper 80194, University Library of Munich, Germany.
    2. repec:spr:jopoec:v:30:y:2017:i:4:d:10.1007_s00148-017-0641-4 is not listed on IDEAS
    3. Manisha Shah & Bryce Millett Steinberg, 2015. "Workfare and Human Capital Investment: Evidence from India," NBER Working Papers 21543, National Bureau of Economic Research, Inc.
    4. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, vol. 115(C), pages 1-15.
    5. David Atkin, 2016. "Endogenous Skill Acquisition and Export Manufacturing in Mexico," American Economic Review, American Economic Association, vol. 106(8), pages 2046-2085, August.
    6. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," World Bank Economic Review, World Bank Group, vol. 29(3), pages 449-478.
    7. Greenland, Andrew & Lopresti, John, 2016. "Import exposure and human capital adjustment: Evidence from the U.S," Journal of International Economics, Elsevier, vol. 100(C), pages 50-60.
    8. Gerhard Toews & Alexander Libman, 2017. "Getting Incentives Right: Human Capital Investment and Natural Resource Booms," Working Papers 370, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    9. Pavcnik, Nina, 2017. "The Impact of Trade on Inequality in Developing Countries," CEPR Discussion Papers 12331, C.E.P.R. Discussion Papers.
    10. Berk Ozler, 2015. "Keeping Girls in School," World Bank Other Operational Studies 23866, The World Bank.
    11. Guadalupe Kavanaugh & Maria Sviatschi & Iva Trako, 2018. "Women Officers, Gender Violence and Human Capital: Evidence from Women's Justice Centers in Peru," PSE Working Papers halshs-01828539, HAL.
    12. repec:pje:journl:article16winiv is not listed on IDEAS
    13. repec:eee:inecon:v:106:y:2017:i:c:p:165-183 is not listed on IDEAS
    14. Andrew D. Foster & Esther Gehrke, 2017. "Consumption Risk and Human Capital Accumulation in India," NBER Working Papers 24041, National Bureau of Economic Research, Inc.
    15. Jain, Tarun & Maitra, Pushkar & Mani, Subha, 2016. "Barriers to Skill Acquisition: Evidence from English Training in India," IZA Discussion Papers 10199, Institute for the Study of Labor (IZA).
    16. Nina Pavcnik, 2017. "The Impact of Trade on Inequality in Developing Countries," NBER Working Papers 23878, National Bureau of Economic Research, Inc.
    17. Manabu Furuta & Prabir Bhattacharya & Takahiro Sato, 2017. "Effects of Trade Liberalization on the Gender Wage Gap: Evidences from Panel Data of the Indian Manufacturing Sector," Discussion Paper Series DP2017-22, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2018.

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    Keywords

    India; Call centers; Education; Outsourcing;

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