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

Listed author(s):
  • Yamauchi, Futoshi

"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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File URL: http://www.sciencedirect.com/science/article/pii/S0304-3878(06)00111-8
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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 83 (2007)
Issue (Month): 1 (May)
Pages: 37-62

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Handle: RePEc:eee:deveco:v:83:y:2007:i:1:p:37-62
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  10. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier.
  11. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
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  13. 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.
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  30. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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