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Intergenerational Effect of Education Reform Program and Maternal Education on Children's Educational and Labor Outcomes: Evidence from Nepal

Listed author(s):
  • Vinish Shrestha

    ()

    (Department of Economics, Towson University)

  • Rashesh Shrestha

    ()

    (Crawford School of Public Policy, Australian National University)

Registered author(s):

    We examine a potential intergenerational determinant of child labor by investigating the effect of maternal education on children0 s educational and labor outcomes. To account for endogeneity of mother's education, we use the Nepal Education System Plan (NESP) (1971), one of the first education reforms in the country, as an exogenous source of variation. We find that NESP increased educational outcomes among females that were most likely affected by the reform due to their birth year and district of birth. Furthermore, an increase in mother's highest level of schooling increases a child's probability of finishing 5th grade only among mothers from a higher caste households. We find modest effects of mother's education on child labor outcomes, with the IV estimate indicating that a year increase in mother's education reduces a child's weekly work by approximately an hour. The IV estimates are about two-fold larger than the OLS estimates in most cases. We caution that exclusion based on social hierarchy should be considered when promoting maternal education as a medium to improve children's well-being in developing nations like Nepal.

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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2017-03.pdf
    File Function: First version, 2017
    Download Restriction: no

    Paper provided by Towson University, Department of Economics in its series Working Papers with number 2017-03.

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    Length: 48 pages
    Date of creation: May 2017
    Date of revision: May 2017
    Handle: RePEc:tow:wpaper:2017-03
    Contact details of provider: Postal:
    Towson, Maryland 21252-0001

    Phone: 410-704-2959
    Fax: 410-704-3424
    Web page: http://www.towson.edu/cbe/departments/economics/

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