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

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  • Wada, Kazuya

Abstract

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.

Suggested Citation

  • Wada, Kazuya, 2013. "Changes in Employment Structures and Investments in Children’s Education: Evidence from Rural India," PRIMCED Discussion Paper Series 36, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:primdp:36
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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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    References listed on IDEAS

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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. 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.
    3. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    4. Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters,in: Globalization and Poverty, pages 291-336 National Bureau of Economic Research, Inc.
    5. Krishna, Pravin & Mitra, Devashish, 1998. "Trade liberalization, market discipline and productivity growth: new evidence from India," Journal of Development Economics, Elsevier, vol. 56(2), pages 447-462, August.
    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 803-815, September.
    7. 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.
    8. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, Oxford University Press, vol. 125(2), pages 515-548.
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    More about this item

    Keywords

    Non-agricultural Sectors; Investments in Children’s Education; Disparity;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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