Return on Universal Education: SSA Case Study on Bihar

Dinda, Soumyananda (2015): Return on Universal Education: SSA Case Study on Bihar.

Abstract

Mass universal education is a necessary condition for initiation of economic development in underdeveloped and backward state like Bihar in India. The Govt. of India has taken initiative for universal mass education and prime focus is on Sarbha Shikhsha Abhijan (SSA). This study attempts to assess the impact of universal education programme such as SSA in Bihar. The difference –in- difference (DD) approach is used here to measure the impact of SSA treatment on unorganised sector in Bihar. This study finds that literate people earn Rs. 43 higher than that of illiterate, and SSA is giving additional return nearly more than Rs. 600 Crore per annum only from small and tiny enterprise in urban Bihar.

• Item Type: MPRA Paper
• Language: English
• Keywords: DD, Difference –in-Difference, Control group, Treatment, SSA, Universal Mass Education, Bihar, income, Return on Education, unorganised sector, development
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C18 - Methodological Issues: General; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I25 - Education and Economic Development; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I26 - Returns to Education; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R0 - General

References

Acemoglu, D. & Angrist, J.D. (2001). How Large are Human-Capital Externalities? Evidence from Compulsory-Schooling Laws. In B. Bernanke & K. Rogoff, NBER Macroeconomics Annual (9-59). Cambridge: National Bureau of Economic Research.

Ashenfelter, O. Harmon, C. & Oosterbeek, H. (1999). A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias.” Labour Economics, 6 (3), 453–470.

Becker, G.S. (1962). Investment in Human Capital: A Theoretical Analysis. The Journal of Political Economy, 70 (5), 9–49.

Card, D. (1999). The Causal Effect of Education on Earnings. In Ashenfelter, O. and Card, D., Handbook of Labor Economics. Rotterdam: Elsevier.

Chevalier, A. (2011). Subject Choice and Earning of UK Graduates. Economics of Education Review, Special Issue.

Dee, T.S. (2004). Are There Civic Returns to Education?.” Journal of Public Economics 88 (9-10), 1697–1720.

de la Fuente, A. & Ciccone, A. (2003). Human Capital in a Global and Knowledge-Based Economy. European Commission: DG Employment and Social Affairs.

Devereux, P. & Fan, W. (2011). Earnings Returns to the British Education Expansion. Economics of Education Review, Special Issue.

Dickson, Matt R. and Sarah Smith. 2011. “What Determines the Return to Education: An Extra Year or a Hurdle Cleared?” Economics of Education Review, Special Issue.

Dinda, S. (2015). A Note on DD Approach. MPRA Paper 63949.

Green, F. & Zhu, Y. (2010). "Overqualification, Job Dissatisfaction, and Increasing Dispersion in the Returns to Graduate Education." Oxford Economic Papers, 62 (4), 740-763.

Harmon, C.P., Oosterbeek, H. & Walker, I. (2003). The Returns to Education: Microeconomics. Journal of Economic Surveys, 17 (2), 115–155.

Harmon, C.P., Hogan, V. & Walker, I. (2003). Dispersion in the economic return to schooling. Labour Economics, 10 (2), 205-214.

Haveman, R.H. & Wolfe. B.L. (1984). Schooling and Economic Well-Being: The Role of Nonmarket Effects. Journal of Human Resources, 19 (3), 377–407.

Heckman, J.J., Lochner, L. & Todd, P. (2006). Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond. In E. Hanushek & F.Welch, Handbook of the Economics of Education, 307–458, Rotterdam:Elsevier.

Harmon, C. (2011). Economic Returns to Education: What we know, what we don’t know, and where we are going – some brief pointers. IZA Policy Paper No. 29.

Heckman, J.J., Lochner, L. & Todd P. (2008). Earnings Functions and Rates of Return. Journal of Human Capital, 2 (1), 1–31.

Heckman, J.J., Tobias, J. & Vytlacil, E. (2001). Four parameters of interest in the evaluation of social programs. Southern Economic Journal, 68 (2), 419-442.

Heckman, J.J. & Urzua, S. (2009). Comparing IV With Structural Models: What Simple IV Can and Cannot Identify. National Bureau of Economic Research Working Paper 14706.

Heckman, J.J. & Vytlacil, E. (2005). Structural Equations, Treatment Effects and Econometric Policy Evaluation. Econometrica, 73 (3), 669–738.

Henderson, Daniel J., Solomon J. Polachek and Le Wang. 2011. “Heterogeneity in Schooling Rates of Return.” Economics of Education Review, Special Issue.

Lochner, Lance. 2004. “Education, Work, and Crime: A Human Capital Approach.” International Economic Review 45 (3): 811–843.

Melnik, A., Pollatschek, M.A. & Comay, Y. (1973). The Option Value of Education and the Optimal Path for Investment in Human Capital. International Economic Review, 14 (2), 421–435.

Milligan, K., Moretti, E. & Oreopoulos, P. (2004). Does education improve citizenship? Evidence from the United States and the United Kingdom. Journal of Public Economics, 88 (9), 1667–1695.

Oreopoulos, P. (2007). Do dropouts drop out too soon? Wealth, health and happiness from compulsory schooling. Journal of Public Economics, 91 (11-12), 2213–2229.

Oreopoulos, P. & Salvanes, K.G. (2011). Priceless: The Nonpecuniary Benefits of Schooling.Journal of Economic Perspectives, 25 (1), 159–84.

Palacios-Huerta, I. (2003). An Empirical Analysis of the Risk Properties of Human Capital Returns. American Economic Review, 93 (3), 948–964.

Park, S. (2011). Returning to School for Higher Returns. Economics of Education Review, Special Issue.

Walker, I. & Zhu, Y. (2008). The College Wage Premium and the Expansion of Higher Education in the UK. Scandinavian Journal of Economics, 110 (4), 695-709.

Walker, I. & Zhu, Y. (2011). Differences by Degree: Evidence of the Net Financial Rates of Return to Undergraduates. Economics of Education Review, Special Issue.

Psacharopoulos, G. and Patrinos, H. (2004). Returns to investment in education: A further update. Education Economics, 12(2), 111-134.