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The Role of Social Identity and Perceived Discrimination in Human Capital Formation: Evidence from India

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  • Gupta, Isha

Abstract

This study examines the role of historically defined social identity in human capital development over time by focusing on a region from India where social identities are defined along the lines of castes and religious groups. It investigates the evolution of gaps across social groups in children's cognitive outcomes and parental investment in children's education from ages 5 to 15. Significant gaps in test scores and parental investment are found between children from lower and upper Hindu castes. These gaps, which originate early in childhood and persist throughout the 10 years of the study period, cannot be completely explained by the differences in socioeconomic status across social groups. Moreover, the perception of social discrimination is also found to be a significant contributor to the gaps in cognitive outcomes and parental investment across social groups. While parents' perceived social discrimination is associated with lower parental investment throughout childhood, it is negatively associated with children's cognitive outcomes only at later ages.

Suggested Citation

  • Gupta, Isha, 2022. "The Role of Social Identity and Perceived Discrimination in Human Capital Formation: Evidence from India," GLO Discussion Paper Series 1190, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1190
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    References listed on IDEAS

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    More about this item

    Keywords

    child development; parental investment; human capital formation; social identity; caste; perceived social discrimination; India;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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