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Does higher level of education reduce poverty and increase inequality? Evidence from Urban India

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  • Sabyasachi Tripathi

Abstract

By considering India's 52 large urban agglomerations, this paper finds the relationship between higher level of education and poverty and inequality in urban India. Besides using city level education data from University Grants Commission (UGC), the study uses two rounds of National Sample Survey (NSS) unit-level data on 'consumption expenditure', and 'employment and unemployment' for the year 2011-2012. An empirical analysis using OLS regression method has shown that city level education, proxied by city-wise total number of PhD students enrolled in the universities, has a negative impact on city level poverty rate as seen by poverty head-count ratio, poverty gap ratio, and squared poverty gap ratio. On the other hand, city level education has a positive impact on city level inequality. City-wise work force participation rate has a negative effect on city poverty rate. The article suggests that we need appropriate city level policy to promote higher level education for reduction in city level inequality and poverty rate for sustainable urban development in India.

Suggested Citation

  • Sabyasachi Tripathi, 2019. "Does higher level of education reduce poverty and increase inequality? Evidence from Urban India," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 22(3), pages 419-431.
    • Handle: RePEc:ids:ijbglo:v:22:y:2019:i:3:p:419-431
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    1. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    2. Cowan, Robin & Zinovyeva, N., 2007. "Short-term effects of new universities on regional innovation," MERIT Working Papers 2007-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Hoi Quoc Le, 2010. "The Linkages between Growth, Poverty and Inequality in Vietnam: An Empirical Analysis," Working Papers 06, Development and Policies Research Center (DEPOCEN), Vietnam.
    4. Edward L. Glaeser & Matt Resseger & Kristina Tobio, 2009. "Inequality In Cities," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 617-646, October.
    5. Surja Datta & Mohammed Saad, 2011. "University and innovation systems: the case of India," Science and Public Policy, Oxford University Press, vol. 38(1), pages 7-17, February.
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    Cited by:

    1. David Simon & Yutika Vora & Tarun Sharma & Warren Smit, 2021. "Responding to Climate Change in Small and Intermediate Cities: Comparative Policy Perspectives from India and South Africa," Sustainability, MDPI, vol. 13(4), pages 1-16, February.

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    More about this item

    Keywords

    level of higher education; large agglomerations; poverty; inequality; Urban India.;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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