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

Year: 2010

Type: article

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)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.2.4.42

Authors: Eric V Edmonds, Nina Pavcnik, Petia Topalova

Institutions: Dartmouth College, National Bureau of Economic Research, International Monetary Fund

Language: English

Topic: Poverty, Education, and Child Welfare

Subfield: Development

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Reduced inequalities, Quality education

Open Access status: green

Funders: National Science Foundation, Dartmouth College