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

Human Capital Response to Globalization: Education and Information Technology in India Abstract: Recent studies suggest that globalization increases inequality, by increasing skilled wage premiums in developing countries. This effect may be mitigated, however, if human capital responds to global opportunities. I study how the impact of globalization varies across Indian districts with different costs of learning English. Linguistic diversity in India compels individuals to learn English or Hindi. Some districts have lower relative costs of learning English due to linguistic predispositions. I demonstrate that these districts benefited more from globalization: They experienced greater growth in information technology and school enrollment. Consistent with this response, they experienced smaller increases in skilled wage premiums. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

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

Journal of Human Resources, Volume 47 (2) – Apr 6, 2012

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Publisher
University of Wisconsin Press
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©by the Board of Regents of the University of Wisconsin System
ISSN
1548-8004
Publisher site
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Abstract

Abstract: Recent studies suggest that globalization increases inequality, by increasing skilled wage premiums in developing countries. This effect may be mitigated, however, if human capital responds to global opportunities. I study how the impact of globalization varies across Indian districts with different costs of learning English. Linguistic diversity in India compels individuals to learn English or Hindi. Some districts have lower relative costs of learning English due to linguistic predispositions. I demonstrate that these districts benefited more from globalization: They experienced greater growth in information technology and school enrollment. Consistent with this response, they experienced smaller increases in skilled wage premiums.

Journal

Journal of Human ResourcesUniversity of Wisconsin Press

Published: Apr 6, 2012

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