Large-Scale Education Reform in General Equilibrium: Regression Discontinuity Evidence from India
研究印度大规模政府教育投资的一般均衡效应，发现教育年回报率为13.4%，但一般均衡效应使回报率降低6.6个百分点，且对不同技能群体影响不同。
The economic consequences of large-scale government investments in education depend on general equilibrium effects in both the labor market and the education sector. I develop a general equilibrium model capturing the consequences of massive countrywide schooling initiatives. I provide unbiased estimates of the model’s elasticities, using a regression discontinuity derived from Indian government policy. The earnings returns to a year of education are 13.4%, and the general equilibrium labor market effects substantially depress returns, by 6.6 percentage points. These general equilibrium effects have distributional consequences across cohorts and skill groups, whereby unskilled workers are better off and skilled workers worse off.