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Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India

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  • Yamauchi, Futoshi

Abstract

"This paper empirically identifies social learning and neighborhood effects in schooling investments in a new technology regime. The estimates of learning-investment rule from farm household panel data at the onset of the Green Revolution in India, show that (1) agents learn about schooling returns from income realizations of their neighbors and (2) schooling distribution of the parents' generation in a community has externalities to schooling investments in children that are consistent with social learning. Simulations show that variations in schooling distributions within and across communities generate through social learning substantial variations in child enrollment rate and average household income. The results suggest that imperfect information hinders investment in human capital." Author's Abstract

Suggested Citation

  • Yamauchi, Futoshi, 2005. "Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India," FCND discussion papers 190, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:190
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    References listed on IDEAS

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    Cited by:

    1. Hanjra, Munir A. & Ferede, Tadele & Gutta, Debel Gemechu, 2009. "Reducing poverty in sub-Saharan Africa through investments in water and other priorities," Agricultural Water Management, Elsevier, vol. 96(7), pages 1062-1070, July.
    2. Bernard, Tanguy & Dercon, Stefan & Taffesse, Alemayehu Seyoum, 2011. "Beyond fatalism: An empirical exploration of self-efficacy and aspirations failure in Ethiopia," IFPRI discussion papers 1101, International Food Policy Research Institute (IFPRI).
    3. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Girls take over: Long-term impacts of an early stage education intervention in the Philippines," IFPRI discussion papers 1144, International Food Policy Research Institute (IFPRI).
    4. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    5. Futoshi Yamauchi & Sakiko Tanabe, 2008. "Nonmarket networks among migrants: evidence from metropolitan Bangkok, Thailand," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 649-664, July.
    6. Kenneth A. Swinnerton, 2016. "How do adult returns to schooling affect children’s enrollment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 305-305, October.
    7. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    8. Wang, Honglin & Yu, Fan & Reardon, Thomas & Huang, Jikun & Rozelle, Scott, 2013. "Social learning and parameter uncertainty in irreversible investments: Evidence from greenhouse adoption in northern China," China Economic Review, Elsevier, vol. 27(C), pages 104-120.
    9. Yamauchi, Futoshi & Liu, Yanyan, 2012. "School quality, labor markets and human capital investments : long-term impacts of an early stage education intervention in the Philippines," Policy Research Working Paper Series 6247, The World Bank.
    10. Yamauchi, Futoshi, 2011. "School quality, clustering and government subsidy in post-apartheid South Africa," Economics of Education Review, Elsevier, vol. 30(1), pages 146-156, February.
    11. Tsusaka, Takuji W. & Kajisa, Kei & Pede, Valerien O. & Aoyagi, Keitaro, 2015. "Neighborhood effects and social behavior: The case of irrigated and rainfed farmers in Bohol, the Philippines," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 227-246.
    12. Adelman, Sarah, 2013. "Keep your friends close: The effect of local social networks on child human capital outcomes," Journal of Development Economics, Elsevier, vol. 103(C), pages 284-298.
    13. Nerman, Måns & Owens, Trudy, 2010. "The Push Towards UPE and the Determinants of the Demand for Education in Tanzania," Working Papers in Economics 472, University of Gothenburg, Department of Economics, revised 13 Mar 2012.
    14. Leonardo Becchetti & Pierluigi Conzo, 2014. "The effects of microfinance on child schooling: a retrospective approach," Applied Financial Economics, Taylor & Francis Journals, vol. 24(2), pages 89-106, January.
    15. Ohe, Yasuo, 2012. "A Stepwise Innovation toward Viable Educational Services in Agriculture: Evidence from Japan," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135771, European Association of Agricultural Economists.

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    Keywords

    Human capital ; Risk ; Social learning ; School enrollment ; technological changes ; Green Revolution ;

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