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Abstract

The rural poor in developing countries, once economically isolated, are increasingly being connected to regional markets. Whether these new connections crowd out or encourage educational investment is a central question. We examine the impacts on educational choices of 115,000 new roads built under India-s flagship road construction program. We find that children stay in school longer and perform better on standardized exams. Treatment heterogeneity supports the predictions of a standard human capital investment model: enrollment increases are largest where nearby labor markets offer the highest returns to education and lowest where they imply high opportunity costs of schooling.



Item Type: MPRA Paper -

Original Title: Educational Investment Responses to Economic Opportunity: Evidence from Indian Road Construction-

Language: English-

Keywords: Education; Roads; India; Human capital; labor demand shocks; infrastructure; development-

Subjects: I - Health, Education, and Welfare > I2 - Education and Research Institutions > I25 - Education and Economic DevelopmentJ - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor ProductivityO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure-





Author: Adukia, Anjali

Source: https://mpra.ub.uni-muenchen.de/80194/



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