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American Economic Journal: Applied Economics: Vol. 2 No. 4 (October 2010)

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

Article Citation

Edmonds, Eric V., Nina Pavcnik, and Petia Topalova. 2010. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform." American Economic Journal: Applied Economics, 2(4): 42-75.

DOI: 10.1257/app.2.4.42

Abstract

Does trade policy influence schooling and child labor in low-income countries? We examine this question in the context of India's 1991 tariff reforms. While schooling increased and child labor declined in rural India in the 1990s, these trends are attenuated in districts with employment concentrated in industries losing tariff protection. As the loss of protection causes a relative rise in poverty in affected districts, families reduce schooling to save schooling costs. Girls disproportionately bear the burden of helping their families cope with poverty. (JEL F13, F16, I21, J13, J82, O15, O19)

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Authors

Edmonds, Eric V. (Dartmouth College and IZA)
Pavcnik, Nina (Dartmouth College and BREAD)
Topalova, Petia (IMF)

JEL Classifications

F13: Trade Policy; International Trade Organizations
F16: Trade and Labor Market Interactions
I21: Analysis of Education
J13: Fertility; Family Planning; Child Care; Children; Youth
J82: Labor Standards: Labor Force Composition
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O19: International Linkages to Development; Role of International Organizations

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