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Human Capital Response to Globalization: Education and Information Technology in India

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  • Gauri Kartini Shastry

Abstract

Recent studies suggest that globalization increases inequality, by increasing skilled wage premiums in developing countries. This effect may be mitigated, however, if human capital responds to global opportunities. I study how the impact of globalization varies across Indian districts with different costs of learning English. Linguistic diversity in India compels individuals to learn English or Hindi. Some districts have lower relative costs of learning English due to linguistic predispositions. I demonstrate that these districts benefited more from globalization: They experienced greater growth in information technology and school enrollment. Consistent with this response, they experienced smaller increases in skilled wage premiums.

Suggested Citation

  • Gauri Kartini Shastry, 2012. "Human Capital Response to Globalization: Education and Information Technology in India," Journal of Human Resources, University of Wisconsin Press, vol. 47(2), pages 287-330.
  • Handle: RePEc:uwp:jhriss:v:46:y:2012:ii:1:p:287-330
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Adukia, Anjali & Asher, Samuel & Novosad, Paul, 2017. "Educational Investment Responses to Economic Opportunity: Evidence from Indian Road Construction," MPRA Paper 80194, University Library of Munich, Germany.
    2. Robert T. Jensen, 2010. "Economic Opportunities and Gender Differences in Human Capital: Experimental Evidence for India," NBER Working Papers 16021, National Bureau of Economic Research, Inc.
    3. David Atkin, 2016. "Endogenous Skill Acquisition and Export Manufacturing in Mexico," American Economic Review, American Economic Association, pages 2046-2085.
    4. repec:eee:wdevel:v:97:y:2017:i:c:p:313-329 is not listed on IDEAS
    5. Emily Oster & M. Bryce Millett, 2010. "Do Call Centers Promote School Enrollment? Evidence from India," NBER Working Papers 15922, National Bureau of Economic Research, Inc.
    6. Thomas Le Barbanchon & Roland Rathelot & Alexandra Roulet, 2017. "Unemployment Insurance and Reservation Wages: Evidence from Administrative Data," NBER Working Papers 23406, National Bureau of Economic Research, Inc.
    7. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, pages 1-15.
    8. Gomes, Joseph, 2014. "The health costs of ethnic distance: evidence from Sub-Saharan Africa," ISER Working Paper Series 2014-33, Institute for Social and Economic Research.
    9. repec:pje:journl:article16winiv is not listed on IDEAS
    10. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," World Bank Economic Review, World Bank Group, pages 449-478.
    11. Jain, Tarun & Maitra, Pushkar & Mani, Subha, 2016. "Barriers to Skill Acquisition: Evidence from English Training in India," IZA Discussion Papers 10199, Institute for the Study of Labor (IZA).
    12. Christian Dustmann & Nikolaos Theodoropoulos, 2010. "Ethnic minority immigrants and their children in Britain," Oxford Economic Papers, Oxford University Press, pages 209-233.
    13. Majlesi, Kaveh, 2014. "Demand for Low-Skilled Labor and Parental Investment in Children's Education: Evidence from Mexico," Working Papers 2014:5, Lund University, Department of Economics.
    14. Jain, Tarun, 2011. "Common tongue: The impact of language on economic performance," MPRA Paper 34423, University Library of Munich, Germany.
    15. Mehtabul Azam & Aimee Chin & Nishith Prakash, 2013. "The Returns to English-Language Skills in India," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 335-367.
    16. repec:bpj:ajlecn:v:8:y:2017:i:1:p:36:n:1 is not listed on IDEAS
    17. Congdon Fors, Heather, 2012. "Social Globalization and Child Labor," Working Papers in Economics 533, University of Gothenburg, Department of Economics.
    18. Stephen D. O'Connell, 2014. "Political Inclusion and Educational Investment," Working Papers 4, City University of New York Graduate Center, Ph.D. Program in Economics, revised 15 Jul 2015.
    19. 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.
    20. Oster, Emily & Steinberg, Bryce Millett, 2013. "Do IT service centers promote school enrollment? Evidence from India," Journal of Development Economics, Elsevier, pages 123-135.
    21. repec:eee:inecon:v:106:y:2017:i:c:p:165-183 is not listed on IDEAS
    22. LEE, Jong-Wha & Wie, Dainn, 2017. "Wage Structure and Gender Earnings Differentials in China and India," World Development, Elsevier, pages 313-329.
    23. David Clingingsmith, 2014. "Industrialization and Bilingualism in India," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 73-109.

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