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How structure of production determines the demand for human capital

Author

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  • Gill, Indermit S.
  • Khandker, Shahidur R.

Abstract

On the issue of women's status, the objectives of this paper are twofold. First, it attempts to make precise some of the claims and allegations regarding the existence of bias against females in the allocation of resources within the household. The idea is to formulate these questions explicitly, so that it is possible to identify whether and to what degree there is evidence of this bias. Second, it identifies causes of this bias with the objective of isolating key factors that can be used for policy. In contrast to earlier studies that attemptto account for male-female differences in human capital, the authors do not assume any discrimination against females either at home (in the parent's utility function) or in the market (in the returns to human capital). It is assumed, however, that women have a comparative advantage in working in some sectors of the economy. Thus, increases in the shares of these sectors will increase the demand for female human capital. This explicit attention to factors that can be used as policy instruments -- and the relative neglect of factors reflecting gender bias in tastes -- is the point of departure from earlier literature. This paper develops the theory, tests the hypotheses, and concludes with a discussion of the policy implications.

Suggested Citation

  • Gill, Indermit S. & Khandker, Shahidur R., 1991. "How structure of production determines the demand for human capital," Policy Research Working Paper Series 725, The World Bank.
  • Handle: RePEc:wbk:wbrwps:725
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    References listed on IDEAS

    as
    1. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    2. Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993. "How infrastructure and financial institutions affect agricultural output and investment in India," Journal of Development Economics, Elsevier, vol. 41(2), pages 337-366, August.
    3. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
    4. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 33-58, January.
    5. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
    6. Pitt, Mark M & Rosenzweig, Mark R & Hassan, Md Nazmul, 1990. "Productivity, Health, and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries," American Economic Review, American Economic Association, vol. 80(5), pages 1139-1156, December.
    7. Gill,Indermit S., 1990. "Does the structure of production affect demand for schooling in Peru?," Policy Research Working Paper Series 468, The World Bank.
    8. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    9. Ehrlich, Isaac & Chuma, Hiroyuki, 1990. "A Model of the Demand for Longevity and the Value of Life Extension," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 761-782, August.
    10. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630 Elsevier.
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