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Do Call Centers Promote School Enrollment? Evidence from India

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  • Emily Oster
  • M. Bryce Millett

Abstract

Over the last two decades in India there have been large increases in outsourced jobs and large increases in schooling rates, particularly in English. Existing evidence suggests the trends are broadly related. In this paper we explore how localized these impacts are; this has implications for understanding how quickly information about these jobs diffuses. We use panel data on school enrollment from a comprehensive school-level administrative dataset. This is merged with detailed data on Information Technology Enabled Services (ITES) center location and founding dates. Using school fixed effects, we estimate the impact of introducing a new ITES center in the vicinity of the school on enrollment. We find that introducing a new ITES center results in a 5.7% increase in number of children enrolled; these effects are extremely localized. We argue this result is not driven by pre-trends in enrollment or endogenous center placement, and is not a result of ITES-center induced changes in population or increases in income. The effect is driven entirely by English-language schools, consistent with the claim that the impacts are driven by changes in returns to schooling.

Suggested Citation

  • 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.
    • Handle: RePEc:nbr:nberwo:15922
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    Cited by:

    1. Drusilla K Brown & Alan V Deardorff & Robert M Stern, 2013. "Labor Standards and Human Rights: Implications for International Trade and Investment," World Scientific Book Chapters, in: Zdenek Drabek & Petros Mavroidis (ed.), Regulation of Foreign Investment Challenges to International Harmonization, chapter 5, pages 153-195, World Scientific Publishing Co. Pte. Ltd..
    2. Robert T. Jensen, 2010. "Economic Opportunities and Gender Differences in Human Capital: Experimental Evidence for India," NBER Working Papers 16021, National Bureau of Economic Research, Inc.
    3. Silvia Helena Barcellos & Leandro S. Carvalho & Adriana Lleras-Muney, 2014. "Child Gender and Parental Investments in India: Are Boys and Girls Treated Differently?," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 157-189, January.
    4. David Atkin, 2016. "Endogenous Skill Acquisition and Export Manufacturing in Mexico," American Economic Review, American Economic Association, vol. 106(8), pages 2046-2085, August.
    5. Victoria Baranov & Hans-Peter Kohler, 2018. "The Impact of AIDS Treatment on Savings and Human Capital Investment in Malawi," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 266-306, January.
    6. Anirudh Shingal, 2014. "Services globalization and sub-national demand linkages: The case of India," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-23.
    7. Heath, Rachel, 2014. "Women’s Access to Labor Market Opportunities, Control of Household Resources, and Domestic Violence: Evidence from Bangladesh," World Development, Elsevier, vol. 57(C), pages 32-46.
    8. 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.
    9. Mehtabul Azam & Aimee Chin & Nishith Prakash, 2013. "The Returns to English-Language Skills in India," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 335-367.
    10. MacLeod, W. Bentley & Urquiola, Miguel, 2012. "Competition and Educational Productivity: Incentives Writ Large," IZA Discussion Papers 7063, Institute of Labor Economics (IZA).
    11. Gauri Kartini Shastry, 2012. "Human Capital Response to Globalization: Education and Information Technology in India," Journal of Human Resources, University of Wisconsin Press, vol. 47(2), pages 287-330.
    12. David Clingingsmith, 2014. "Industrialization and Bilingualism in India," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 73-109.
    13. Agrawal, Ajay & Lacetera, Nicola & Lyons, Elizabeth, 2016. "Does standardized information in online markets disproportionately benefit job applicants from less developed countries?," Journal of International Economics, Elsevier, vol. 103(C), pages 1-12.
    14. Heath, Rachel, 2012. "Women's access to labor market opportunities, control of household resources, and domestic violence," Policy Research Working Paper Series 6149, The World Bank.

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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