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English language premium: Evidence from a policy experiment in India

Author

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  • Chakraborty, Tanika
  • Bakshi, Shilpi Kapur

Abstract

In this paper, we estimate the English premium in a globalizing economy, by exploiting an exogenous language policy intervention in India that abolished teaching of English in public primary schools. Our results indicate that a 10% lower probability of learning English in primary schools leads to a decline in weekly wages by 8%. On an average, this implies 26% lower wages for cohorts exposed to the policy change. We find supporting evidence that occupational choice played an important role in determining this wage-gap.

Suggested Citation

  • Chakraborty, Tanika & Bakshi, Shilpi Kapur, 2016. "English language premium: Evidence from a policy experiment in India," Economics of Education Review, Elsevier, vol. 50(C), pages 1-16.
  • Handle: RePEc:eee:ecoedu:v:50:y:2016:i:c:p:1-16
    DOI: 10.1016/j.econedurev.2015.10.004
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    Cited by:

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    2. Cabrera Hernández, Francisco-Javier, 2016. "Essays on the impact evaluation of education policies in Mexico," Economics PhD Theses 0316, Department of Economics, University of Sussex Business School.
    3. Naveen Kumar, 2019. "Public Schools Can Improve Student Outcomes: Evidence from a Natural Experiment in India," 2019 Papers pku634, Job Market Papers.
    4. Zhou, Yonghong & Zhu, Rong & Zheng, Xian, 2020. "Second language skills and labor market outcomes: Evidence from the handover of Hong Kong," China Economic Review, Elsevier, vol. 59(C).
    5. Zimmermann, Laura, 2020. "Remember when it rained – Schooling responses to shocks in India," World Development, Elsevier, vol. 126(C).
    6. Jain, Tarun & Maitra, Pushkar & Mani, Subha, 2019. "Barriers to skill acquisition: Evidence from English training in India," World Development, Elsevier, vol. 114(C), pages 314-325.
    7. Victor Agadjanian & Byeongdon Oh, 2020. "Continuities in Transition: Ethnicity, Language and Labour Market Inequalities in Kyrgyzstan," Development and Change, International Institute of Social Studies, vol. 51(6), pages 1579-1612, November.
    8. Dovì, Max-Sebastian, 2019. "Does higher language proficiency decrease the probability of unemployment? Evidence from China," China Economic Review, Elsevier, vol. 54(C), pages 1-11.
    9. Hemanshu Kumar & Rohini Somanathan & Mahima Vasishth, 2020. "Language and Learning in Ethically Mixed Communities: A Study of School Children in an Indian Village," Working Papers 35, Ashoka University, Department of Economics.
    10. Somdeep Chatterjee, 2018. "Do Private Tutors Enhance English Language Ability? Regression Discontinuity Evidence From A Policy Experiment In India," Bulletin of Economic Research, Wiley Blackwell, vol. 70(2), pages 139-149, April.

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    More about this item

    Keywords

    English premium; Language; Triple difference; Education policy; Wage; Occupation;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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