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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.

Suggested Citation

  • 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. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779 Elsevier.
    2. 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.
    3. repec:eee:wdevel:v:106:y:2018:i:c:p:99-110 is not listed on IDEAS
    4. 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.
    5. repec:esx:essedp:729 is not listed on IDEAS

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