Educational investment responses to economic opportunity: evidence from Indian road construction
File(s)
Accepted version
Author(s)
Adukia, Anjali
Asher, Sam
Novosad, Paul
Type
Journal Article
Abstract
The rural poor in developing countries, once economically isolated, are increasingly being connected to outside markets. Whether these new connections crowd out or encourage educational investment is a central question. We examine the effects on educational choices of 115,000 new roads built under India's flagship road construction program. We find that children stay in school longer and perform better on standardized exams. Heterogeneity in treatment effects supports a standard human capital investment model: enrollment increases most when nearby labor markets offer high returns to educationand least when they imply high opportunity costs of schooling.
Date Issued
2020-01-01
Date Acceptance
2020-01-01
Citation
American Economic Journal: Applied Economics, 2020, 12 (1), pp.348-76
ISSN
1945-7782
Publisher
American Economic Association
Start Page
348
End Page
76
Journal / Book Title
American Economic Journal: Applied Economics
Volume
12
Issue
1
Copyright Statement
Copyright 2025 American Economic Association. All rights reserved. This is the author’s accepted manuscript version.
Publication Status
Published
Date Publish Online
2020-01-01