EconPapers    
Economics at your fingertips  
 

Trade Adjustment and Human Capital Investments; Evidence from Indian Tariff Reform

Eric Edmonds (), Nina Pavcnik and Petia Topalova

No 07/94, IMF Working Papers from International Monetary Fund

Abstract: Do the short and medium term adjustment costs associated with trade liberalization influence schooling and child labor decisions? We examine this question in the context of India's 1991 tariff reforms. Overall, in the 1990s, rural India experienced a dramatic increase in schooling and decline in child labor. However, communities that relied heavily on employment in protected industries before liberalization do not experience as large an increase in schooling or decline in child labor. The data suggest that this failure to follow the national trend of increasing schooling and diminishing work is associated with a failure to follow the national trend in poverty reduction. Schooling costs appear to play a large role in this relationship between poverty, schooling, and child labor. Extrapolating from our results, our estimates imply that roughly half of India's rise in schooling and a third of the fall in child labor during the 1990s can be explained by falling poverty and therefore improved capacity to afford schooling.

Keywords: Education; Human capital; India; Labor markets; Poverty reduction; Trade liberalization; Tariffs; Child Labor, Literacy, schooling, school attendance, primary schools, returns to education, Country and Industry Studies of Trade, Trade and Labor Market Interactions, (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-hrm and nep-int
Date: 2007-04-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=20640 (application/pdf)

Related works:
Journal Article: Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform (2010) Downloads
Working Paper: Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform (2008) Downloads
Working Paper: Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform (2007) Downloads
Working Paper: Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform (2007) Downloads
Working Paper: Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:07/94

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Jim Beardow ().

 
Page updated 2019-09-15
Handle: RePEc:imf:imfwpa:07/94