Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform
American Economic Journal: Applied Economics
vol. 2,
no. 4, October 2010
(pp. 42-75)
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)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.2.4.42Additional Materials
JEL Classification
- 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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