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Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location

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  • P. Duraisamy

Abstract

There is hardly any estimate of the returns to schooling in India based on a national level representative data for the recent period. This paper provides estimates of the returns to education in India by gender, age cohort and location (by rural-urban) for the most recent period 1993/4, and also evaluates the changes in returns over a period of time from 1983-94 using a large national level household survey data. The data show that the returns to education increases up to the secondary level and declines thereafter. There is evidence of substantial gender and rural-urban differences in the returns to schooling. The returns to women's education for the primary and middle levels have declined while those for secondary and college levels have increased during the decade 1983-94.

Suggested Citation

  • P. Duraisamy, 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Working Papers 815, Economic Growth Center, Yale University.
  • Handle: RePEc:egc:wpaper:815
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp815.pdf
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    References listed on IDEAS

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    1. Psacharopoulos, George, 1989. "Time trends of the returns to education: Cross-national evidence," Economics of Education Review, Elsevier, vol. 8(3), pages 225-231, June.
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    5. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    6. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630 Elsevier.
    7. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    8. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
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    10. Heyneman, Stephen P., 1980. "Investment in Indian education: Uneconomic?," World Development, Elsevier, vol. 8(2), pages 145-163, February.
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    Citations

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    Cited by:

    1. Emran, M. Shahe & Shilpi, Forhad, 2015. "Gender, Geography, and Generations: Intergenerational Educational Mobility in Post-Reform India," World Development, Elsevier, vol. 72(C), pages 362-380.
    2. Geeta Kingdon & Nicolas Theopold, 2006. "Do returns to education matter to schooling participation?," Economics Series Working Papers GPRG-WPS-052, University of Oxford, Department of Economics.
    3. repec:ilo:ilowps:486789 is not listed on IDEAS
    4. Kijima, Yoko, 2006. "Why did wage inequality increase? Evidence from urban India 1983-99," Journal of Development Economics, Elsevier, vol. 81(1), pages 97-117, October.
    5. Desai, Mihir A. & Kapur, Devesh & McHale, John & Rogers, Keith, 2009. "The fiscal impact of high-skilled emigration: Flows of Indians to the U.S," Journal of Development Economics, Elsevier, vol. 88(1), pages 32-44, January.
    6. David Cutler & Winnie Fung & Michael Kremer & Monica Singhal & Tom Vogl, 2007. "Mosquitoes: The Long-term Effects of Malaria Eradication in India," NBER Working Papers 13539, National Bureau of Economic Research, Inc.
    7. Fasih, Tazeen & Kingdon, Geeta & Patrinos, Harry Anthony & Sakellariou, Chris & Soderbom, Mans, 2012. "Heterogeneous returns to education in the labor market," Policy Research Working Paper Series 6170, The World Bank.
    8. Takahiro Ito, 2009. "Education and Its Distributional Impacts on Living Standards," Global COE Hi-Stat Discussion Paper Series gd09-080, Institute of Economic Research, Hitotsubashi University.
    9. Barry Bosworth & Susan M. Collins & Arvind Virmani, 2006. "Sources of Growth in the Indian Economy," India Policy Forum, Global Economy and Development Program, The Brookings Institution, pages 1-69.
    10. Tushar Agrawal, 2011. "Returns to education in India: Some recent evidence," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2011-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    11. Ross, Nicholas & Santos, Paulo & Capon, Timothy, 2012. "Risk, ambiguity and the adoption of new technologies: experimental evidence from a developing economy," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126492, International Association of Agricultural Economists.
    12. Subbaraman, Subhashini & von Witzke, Harald, 2006. "Determinants of Wages and Returns to Education in Rural India," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25660, International Association of Agricultural Economists.
    13. Esther Duflo & Rema Hanna, 2005. "Monitoring Works: Getting Teachers to Come to School," Working Papers id:301, eSocialSciences.
    14. Singh, Ashish, 2010. "Inequality of opportunity in India," MPRA Paper 32971, University Library of Munich, Germany.

    More about this item

    Keywords

    Rate of return; human capital; India;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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