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Educational human capital and levels of income: Evidence from states in India, 1965 - 92

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  • Kamakshya Trivedi

Abstract

This paper examines the long-run (steady-state) relationship between levels of educational human capital and levels of income for the 15 major states of India between 1965 and 1992. The relationship is estimated using the Pooled Mean Groups (PMG) technique; which produces common long-run coefficients but allows heterogeneity of the short-run adjustment parameters. The results suggest that levels of educational human capital, proxied by high school enrollment rates, have a robust positive impact on steady-state levels of income. This is true for male and female education, and the regressions also suggest that states which have larger gender-gaps in education have lower steady-state incomes. The estimated relationship is robust to the inclusion of alternative measures, added controls, and variation in the degree of state coverage.

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  • Kamakshya Trivedi, 2006. "Educational human capital and levels of income: Evidence from states in India, 1965 - 92," Journal of Development Studies, Taylor & Francis Journals, vol. 42(8), pages 1350-1378.
    • Handle: RePEc:taf:jdevst:v:42:y:2006:i:8:p:1350-1378
    DOI: 10.1080/00220380600930663
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    Cited by:

    1. Chatterjee, Ishita & Li, Ian & Robitaille, Marie-Claire, 2018. "An overview of India’s primary school education policies and outcomes 2005–2011," World Development, Elsevier, vol. 106(C), pages 99-110.
    2. repec:esx:essedp:729 is not listed on IDEAS
    3. Kozak, Sylwester & Grzęda, Łukasz, 2020. "The Development Of Human Capital On The Labor Market Of The Wielkopolskie Voivodeship," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 13(1), March.
    4. André Mollick, 2011. "The world elasticity of labor substitution across education levels," Empirical Economics, Springer, vol. 41(3), pages 769-785, December.
    5. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    6. Gille, Véronique, 2015. "Distribution of human capital and income: An empirical study on Indian States," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 239-256.
    7. Schündeln, Matthias & Playforth, John, 2014. "Private versus social returns to human capital: Education and economic growth in India," European Economic Review, Elsevier, vol. 66(C), pages 266-283.

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