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Changes in Employment Structures and Investments in Children’s Education: Evidence from Rural India

  • Wada, Kazuya
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    This study investigates the effects of changes in non-agricultural sectors in India on investments in children's education. By using data from the Census of India (1981, 1991, and 2001) and the India Human Development Survey 2005 (IHDS), this study seeks to capture changes in Indian economic situation for the two decades between 1981 and 2001 and examine the effects of those changes on children's educational attainments in 2005. The results of empirical analysis suggest that changes in the first and second decades have different characteristics in terms of expansion among the non-agricultural sectors. In addition, estimation results imply that the expansion of non-agricultural sectors in the 1990s have had positive effects on investments in girls' education, leading to the alleviation of gender disparity in education. However, it should be noted that such expansion may aggravate income inequality in the future because it adversely affects children from poor households.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/25601/1/No36-dp.pdf
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    Paper provided by Institute of Economic Research, Hitotsubashi University in its series PRIMCED Discussion Paper Series with number 36.

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    Length: 32 p.
    Date of creation: Mar 2013
    Date of revision:
    Handle: RePEc:hit:primdp:36
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    1. Philippe Aghion & Robin Burgess & Stephen J. Redding & Fabrizio Zilibotti, 2008. "The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India," American Economic Review, American Economic Association, vol. 98(4), pages 1397-1412, September.
    2. Kaivan Munshi & Mark Rosenzweig, 2006. "Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy," American Economic Review, American Economic Association, vol. 96(4), pages 1225-1252, September.
    3. Datt, Gaurav & Ravallion, Martin, 1998. "Farm productivity and rural poverty in India," FCND discussion papers 42, International Food Policy Research Institute (IFPRI).
    4. 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.
    5. Petia Topalova, 2005. "Trade Liberalization, Poverty And Inequality: Evidence From Indian Districts," Working Papers id:222, eSocialSciences.
    6. Rosenzweig, Mark R & Schultz, T Paul, 1982. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Child Survival in Rural India," American Economic Review, American Economic Association, vol. 72(4), pages 803-15, September.
    7. Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics.
    8. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, MIT Press, vol. 125(2), pages 515-548, May.
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