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Mass education or a minority well educated elite in the process of development: The case of India

  • Amparo Castello-Climent

    ()

  • Abhiroop Mukhopadhyay

    ()

    (Indian Statistical Institute, New Delhi)

This paper analyses whether in developing countries mass education is the key or a highly well educated elite should be more bene?cial for growth. Using the Indian census data as a benchmark and enrollment rates of di!erent levels of schooling we compute annual attainment levels for a panel of 16 Indian states from 1961 to 2001. Results show that one standard deviation increment in the share of population with tertiary education is 3 times more bene?cial for growth than a one standard deviation increment in literacy. Using simulations we consider two alternate policies: one that doubles the increments to the literacy rates (relative to its baseline rate of increase) and another that doubles the annual increments to the share of adult population with tertiary education. We show that at the end of 35 years, the state following the latter policy has a per capita GDP 1.5 time more than the state that emphasizes the former.

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File URL: http://www.isid.ac.in/~pu/dispapers/dp10-08.pdf
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Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 10-08.

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Length: 34 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:ind:isipdp:10-08
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  1. Saint-Paul, Gilles, 1997. "The role of rents to human capital in economic development," Journal of Development Economics, Elsevier, vol. 53(2), pages 229-249, August.
  2. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  3. 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, vol. 3(1), pages 1-69.
  4. Aghion, Philippe & Meghir, Costas & Vandenbussche, Jérôme, 2005. "Growth, Distance to Frontier and Composition of Human Capital," CEPR Discussion Papers 4860, C.E.P.R. Discussion Papers.
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  7. Robert J. Barro & Jong-Wha Lee, 1993. "International Comparisons of Educational Attainment," NBER Working Papers 4349, National Bureau of Economic Research, Inc.
  8. de la Fuente, Angel & Doménech, Rafael, 2000. "Human Capital In Growth Regressions: How Much Difference Does Data Quality Make?," CEPR Discussion Papers 2466, C.E.P.R. Discussion Papers.
  9. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  10. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  11. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
  12. Michael Kremer & Nazmul Chaudhury & F. Halsey Rogers & Karthik Muralidharan & Jeffrey Hammer, 2005. "Teacher Absence in India: A Snapshot," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 658-667, 04/05.
  13. Sarah Voitchovsky, 2005. "Does the Profile of Income Inequality Matter for Economic Growth?," Journal of Economic Growth, Springer, vol. 10(3), pages 273-296, 09.
  14. Ashish Arora & Surendra K. Bagde, 2010. "Human capital and the Indian software industry," NBER Working Papers 16167, National Bureau of Economic Research, Inc.
  15. Chetan Ghate & Stephen Wright, 2008. "V-Factor: Distribution, timing and correlates of the the great Indian growth turnaround," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-03, Indian Statistical Institute, New Delhi, India.
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