Human Capital Response to Globalization: Education and Information Technology in India
研究全球化对印度各地区的影响,发现学习英语成本较低的地区在信息技术和入学率上增长更多,且技能工资溢价上升较小。
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.