Ideas to Action:

Independent research for global prosperity

Event Type

Seminar

Human Capital Response to Globalization: Education and Information Technology in India

Friday, January 18, 2008 - 12:00pm to 1:00pm
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featuring 
Gauri Kartini Shastry 
Ph.D. Candidate, Harvard University 

Moderated by
Michael Clemens
Research Fellow, Center for Global Development

Friday, January 18, 2008 
12:00 p.m.--1:00 p.m. 
(Please bring your lunch--drinks provided.) 

at 
Center for Global Development 
1800 Massachusetts Avenue, NW, Third Floor, Washington, D.C. 

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Abstract: Recent studies have shown that trade liberalization increases skilled wage premiums in developing countries. This result suggests globalization may benefit elite skilled workers relatively more than poor unskilled workers, increasing inequality. This effect may be mitigated, however, if human capital investment responds to new global opportunities. A key question is whether a country with a more elastic human capital supply is better positioned to benefit from globalization. I study how the impact of globalization varies across Indian districts with different costs of skill acquisition. I focus on the cost of learning English, a relevant qualification for high-skilled export jobs. Linguistic diversity in India compels individuals to learn either English or Hindi as a lingua franca. Some districts have lower relative costs of learning English due to linguistic predispositions and psychic costs associated with past nationalistic pressure to adopt Hindi. I demonstrate that districts with a more elastic supply of English skills benefited more from globalization: they experienced greater growth in both information technology jobs and school enrollment. Consistent with this human capital response, they experienced smaller increases in skilled wage premiums. 

Download Human Capital Response to Globalization: Education and Information Technology in India (pdf, 439K) 

Location, Date & Time

Center for Global Development, 1800 Massachusetts Avenue, NW, Third Floor, Washington, DC

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