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Research ArticleArticle

Workfare and Human Capital Investment: Evidence from India

Manisha Shah and Bryce Millett Steinberg
Published online before print October 14, 2019, 1117-9201R2; DOI: https://doi.org/10.3368/jhr.56.2.1117-9201R2
Manisha Shah
1Manisha Shah is a Professor in the Department of Public Policy at the University of California, Los Angeles and a Faculty Research Associate at the NBER ().
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  • For correspondence: [email protected]
Bryce Millett Steinberg
2Bryce Millett Steinberg is an Assistant Professor of Economics and International and Public Affairs at Brown University and a Faculty Research Fellow at the NBER ().
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Abstract

We examine the impact of an increase in the demand for low-skill labor caused by a large public works program (NREGS) on schooling outcomes. Exploiting the staged rollout of the program for causal identification, we show exposure to workfare decreases enrollment by 1–3.5 percentage points and increases labor by 4 percentage points amongst adolescents, with girls primarily substituting into unpaid domestic work. We also find evidence that children exposed to the program in utero to age 4 benefit later in life. We conclude that the opportunity cost of schooling is an important determinant of educational investment.

JEL Codes
  • O12
  • I2
  • I38
  • J1

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Journal of Human Resources: 58 (3)
Journal of Human Resources
Vol. 58, Issue 3
1 May 2023
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Workfare and Human Capital Investment: Evidence from India
Manisha Shah, Bryce Millett Steinberg
Journal of Human Resources Oct 2019, 1117-9201R2; DOI: 10.3368/jhr.56.2.1117-9201R2

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Workfare and Human Capital Investment: Evidence from India
Manisha Shah, Bryce Millett Steinberg
Journal of Human Resources Oct 2019, 1117-9201R2; DOI: 10.3368/jhr.56.2.1117-9201R2
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Keywords

  • O12
  • I2
  • I38
  • J1
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