Working/conference paper: The value of schooling in traditional sectors, with special reference to Indian fisheries

Because I’m being slow in getting this in a better state for publication, I’m posting it here now. Trying to light a fire, as it were.

This paper was presented at the symposium Understanding and Eradicating Poverty in South Asia: Lessons and Options at the University of Rajasthan (Jaipur, India, Oct. 17, 2013). This remains in a draft format; please contact me before citing.

ABSTRACT: The international community has enshrined formal education as one of the key tools necessary to alleviate poverty, on par with ending hunger and fighting disease. In addition, education is often considered a key component of the “modern” geographic, demographic and economic transition off the land, out of the village and into wage jobs in cities. But what does education mean within the rural or traditional economy? What does education mean for the legions of villagers who remain poor farmers and fishers in developing countries such as India? This paper examines the relationship between education and poverty theoretically and empirically in traditional economic sectors. First, the paper sketches an outline of neoclassical economic growth theory, with specific attention to the basic Cobb-Douglas production function. Next, the paper reviews literature on the economic returns to education or human capital, with special attention to traditional sectors when possible. Finally, the paper conducts a quantitative analysis of marine fishery census data from India, testing the empirical relationship between poverty and education within a traditional sector.

The paper ultimately finds evidence to support the idea of returns to education even within India’s coastal fishery economies; in other words, education need not simply be a ticket out of the village. In line with much development literature, female education may have an inverse relationship to poverty stronger than male education. Furthermore, the effect of education can rival that of mechanized capital, often thought to be the key to improving poverty among fishers. However, the results may be attenuated both by the structure of the economy as well as socio-political institutions. Finally, the findings have a spatial quality to them. Some relationships shift when controlling for the fixed or unobserved effects of place, and the effects of education are not uniform across geographies. Taken together, these findings suggest the need for education that is locally tailored, decentralized and relevant specifically for traditional economies.

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