Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?

How do trade shocks affect welfare and inequality when human capital is endogenous? Using an external information technology demand shock and detailed internal migration data from India, this paper first documents that both information technology e...

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Main Author:	Ghose, Devaki
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	TRADE HUMAN CAPITAL MIGRATION LABOR MOBILITY ACCESS TO EDUCATION INEQUALITY INFORMATION TECHNOLOGY DIGITAL ECONOMY LABOR SKILLS
Online Access:	http://documents.worldbank.org/curated/en/565441627412473697/Trade-Internal-Migration-and-Human-Capital-Who-Gains-from-India-s-IT-Boom http://hdl.handle.net/10986/36038

id	okr-10986-36038
recordtype	oai_dc
spelling	okr-10986-360382021-07-30T05:10:37Z Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom? Ghose, Devaki TRADE HUMAN CAPITAL MIGRATION LABOR MOBILITY ACCESS TO EDUCATION INEQUALITY INFORMATION TECHNOLOGY DIGITAL ECONOMY LABOR SKILLS How do trade shocks affect welfare and inequality when human capital is endogenous? Using an external information technology demand shock and detailed internal migration data from India, this paper first documents that both information technology employment and engineering enrollment responded to the rise in information technology exports. Information technology employment responded more when nearby regions had a higher share of college-age population. The paper then develops a quantitative spatial equilibrium model featuring two new channels: higher education choice and differential costs of migrating for college and work. The framework is used to quantify the aggregate and distributional effects of the information technology boom and perform counterfactuals. Without endogenous education, the estimated aggregate welfare gain from the export shock would have been about a third as large and regional inequality twice as large. Reducing barriers to mobility for education, such as reducing in-state quotas for students at higher education institutes, would substantially reduce inequality in the gains from the information technology boom across districts. 2021-07-29T12:46:42Z 2021-07-29T12:46:42Z 2021-07 Working Paper http://documents.worldbank.org/curated/en/565441627412473697/Trade-Internal-Migration-and-Human-Capital-Who-Gains-from-India-s-IT-Boom http://hdl.handle.net/10986/36038 English Policy Research Working Paper;No. 9738 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TRADE HUMAN CAPITAL MIGRATION LABOR MOBILITY ACCESS TO EDUCATION INEQUALITY INFORMATION TECHNOLOGY DIGITAL ECONOMY LABOR SKILLS
spellingShingle	TRADE HUMAN CAPITAL MIGRATION LABOR MOBILITY ACCESS TO EDUCATION INEQUALITY INFORMATION TECHNOLOGY DIGITAL ECONOMY LABOR SKILLS Ghose, Devaki Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?
geographic_facet	South Asia India
relation	Policy Research Working Paper;No. 9738
description	How do trade shocks affect welfare and inequality when human capital is endogenous? Using an external information technology demand shock and detailed internal migration data from India, this paper first documents that both information technology employment and engineering enrollment responded to the rise in information technology exports. Information technology employment responded more when nearby regions had a higher share of college-age population. The paper then develops a quantitative spatial equilibrium model featuring two new channels: higher education choice and differential costs of migrating for college and work. The framework is used to quantify the aggregate and distributional effects of the information technology boom and perform counterfactuals. Without endogenous education, the estimated aggregate welfare gain from the export shock would have been about a third as large and regional inequality twice as large. Reducing barriers to mobility for education, such as reducing in-state quotas for students at higher education institutes, would substantially reduce inequality in the gains from the information technology boom across districts.
format	Working Paper
author	Ghose, Devaki
author_facet	Ghose, Devaki
author_sort	Ghose, Devaki
title	Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?
title_short	Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?
title_full	Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?
title_fullStr	Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?
title_full_unstemmed	Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?
title_sort	trade, internal migration, and human capital : who gains from india’s it boom?
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/565441627412473697/Trade-Internal-Migration-and-Human-Capital-Who-Gains-from-India-s-IT-Boom http://hdl.handle.net/10986/36038
_version_	1764484297917464576

Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom?

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