Human Capital Response to Globalization
研究印度不同地区学习英语的成本差异如何影响全球化对当地人力资本和工资不平等的作用,发现英语学习成本低的地区从全球化中获益更多,技能工资溢价增长更小。
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.