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Are elections immediately preceded by periods of increased violent crimes? In this paper, we test the link between criminal activity and electoral cycles. We use annual data from 1981 to 2007 on crimes and data from the parliamentary elections in India for the same period. Using a difference‐in‐difference design, we find that election years have significantly higher incidence of violent crimes even after accounting for poverty and inequality. This effect is statistically significant and consistent across specifications. The effect is magnified in districts that are more competitive. Similar regressions using economic crimes and elections show either a decline or no effect. Our results are strongly indicative of a close link between violent crimes and elections, and are critical for the growing debate on the criminalization of politics in developing countries. [ABSTRACT FROM AUTHOR]

Agricultural production in developing countries is heavily rainfall dependent. Any unexpected variation in rainfall can affect the welfare of households. Using unit record data from India, this paper shows that households can insure against agricultural productivity (rainfall) shocks. Evidence suggests that they do so by varying the time allocation of individual members to different activities, particularly to regular wage work and human capital accumulation. There is a gender‐differentiated aspect to this response. Rainfall shocks adversely affect women's human capital accumulation. While there is no evidence that households use participation in NREGS to insure against rainfall shocks, the availability of NREGS helps reduce the impact of rainfall shocks on human capital accumulation. [ABSTRACT FROM AUTHOR]

The impact of public programs involving legal protection may depend on the duration of exposure, especially in developing countries with persistent social norms. A longer duration of the program is likely to be associated with gradual positive changes in these norms that beneficiaries could leverage in their favor. However, program effects might also decay if the norms do not change with time, even several years after the legal reforms. This paper examines the heterogeneous impact of the duration of exposure to gender‐neutral reforms in the inheritance law in India on women empowerment. We use the time lag between the year of the amendment in the respective states and the year of marriage to generate exogenous variation in reform exposure among women. The findings indicate a significant non‐linear increase in empowerment because of higher exposure. The gains are more pronounced for instrumental empowerment that relates to the ability to make decisions and to a lesser extent, albeit positively for intrinsic, which pertains to expansion of agency. The impact remains significant across women from rural/urban sector or social groups. At a more disaggregated level, greater exposure led to higher mobility, higher household decision‐making ability, reduced husband controlling behavior, and lesser emotional violence. [ABSTRACT FROM AUTHOR]

An overwhelming body of evidence supports a negative relationship between women's empowerment and fertility. In this paper, we evaluate whether this relationship holds in a setting with a high degree of son preference and limited access to abortion services by focusing on rural India. We exploit the reforms to the Hindu Succession Act that improved female empowerment by mandating equal inheritance rights for women to assess the reform's impact on women's fertility. Using NFHS‐3 data and a difference‐in‐differences estimation, our results show that women who benefitted from the reform had more children than their counterparts. We attribute this increase in fertility to women's ability to use the stopping rule to achieve son preference. Finally, women impacted by the reform had a higher proportion of sons for a given family size, indicating stronger inherent son preference among treated women. [ABSTRACT FROM AUTHOR]

India has been hard‐hit by the Covid‐19 pandemic. The virus has exacted a heavy toll in terms of lives lost and deteriorating health outcomes. The economic consequences of the pandemic have been similarly grim. In this paper we attempt an initial, interim, assessment of the impacts of the crisis on poverty. We review the growing literature that considers emerging poverty impacts, noting that there remain significant knowledge gaps due to limited evidence on current welfare outcomes. We analyze pre‐Covid survey data to examine the incidence of chronic poverty and downward mobility during a period of rapid economic growth and declining poverty. A profile of poverty during such a period might offer a plausible, partial, window on population groups currently at risk. We suggest that, notwithstanding the severe initial impacts of the crisis on poverty, there are grounds for expecting further consequences going forward. As the virus has spread out of the relatively affluent cities, and as economic stagnation persists, rural areas, with historically higher rates of chronic poverty and vulnerability, may see particularly sharp increases in poverty. While recent vaccination developments offer some grounds for optimism, there remains an urgent need to identify, implement and amplify effective policy alleviation measures. [ABSTRACT FROM AUTHOR]

This study employs input‐output analysis to determine the extent of structural changes in the Indian economy, as well as how economic sector linkages changed between 2000 and 2019, and identifies the sectors with profound linkages with other sectors. Furthermore, we use the causative matrix to examine the temporal changes in intersectoral interactions. The analysis shows that manufacturing sectors have stronger intersectoral linkages than sevice sectors, with resource‐intensive and scale‐intensive manufacturing sectors having the most profound linkages. Furthermore, the causative matrix analysis reveals that Indian sectors became more externalized following the global financial crises, while receiving less feedback from other sectors. The results suggest that intersectoral linkages should be taken into account when designing industrial policies, and that investment should be encouraged in India's key economic sectors. [ABSTRACT FROM AUTHOR]

Recently, the government of India has promulgated a sudden move of demonetisation. Such move can be considered as a type of forced formalization. Porta and Shleifer (2014) deals with the issue of formal informal interactions and comes out with an interesting conclusion. The informal sector does not merely exist for taking advantage of legal loopholes. Even if these loopholes are somehow stitched, the informal sector will not become formal. The clue perhaps lies in an old view expressed by Chayanov that in certain circumstances an informal sector can outperform a modern capitalist sector. This paper is a modest attempt to include this clue in a formal model of the simplest possible type that tries to unravel the relation between formal and informal sector as also the consequences of policies that leads to forced formalisation. [ABSTRACT FROM AUTHOR]

This paper examines the simultaneous impacts of exporting and outward foreign direct investment (OFDI) on the domestic investment of Indian manufacturing firms. Combining difference‐in‐differences with generalized propensity score matching estimators, we find that greater engagement in exporting and OFDI is associated with a higher domestic capital investment, although the magnitude of these effects differs across firms depending on the intensity of their participation and the interaction between these two decisions. Whereas exporting is associated with a monotonic increase in firms' domestic capital investment, we find a hump‐shaped relationship between the intensity of firms' OFDI engagement and their subsequent domestic capital investment. We also document evidence that firms that simultaneously export and invest abroad tend to exhibit a higher level of domestic investment, suggesting that these two decisions are complementary in relation to their effect on domestic capital investment. [ABSTRACT FROM AUTHOR]

This paper examines the inter-industry wage structure of the organized manufacturing sector in India for the period 1973/74-2003/04 by estimating the growth of average real wages for production workers by industry. Using wage data on 51 three-digit industries, our estimation procedure obtains estimates of growth of real wages per worker that are wholly deterministic in nature by accounting for any potential structural break(s) associated with the reforms. Our paper identifies three distinct regimes-pre-reform, first phase reforms and second phase reforms, over which real wages have grown at varying rates for each industry. Our findings suggest that the inter-industry wage differences have become more pronounced in the post-reform periods. The paper provides new evidence from India on the need to consider seriously the hypothesis that industry affiliation is potentially an important determinant of wages when studying any relationship between reforms and wages. [ABSTRACT FROM AUTHOR]

Economists are increasingly interested in subjective well‐being, but the economic literature on perceptions of income adequacy, which is one of the factors that shape subjective well‐being, is little. Our paper fills this lacuna. We utilize nationally representative data on perceptions of amounts considered as remunerative earnings from self‐employment in India and examine how these are earnings shaped by social identity, namely, caste. We also investigate if institutional change such as the introduction of an employment guarantee scheme alters these perceptions. Finally, we examine the relationship between caste identity and actual earnings. We find that caste identity does shape both perceptions of income adequacy and actual earnings: lower‐ranked groups perceive lower amounts as being remunerative and also earn lower amounts. Further, the employment guarantee scheme alters self‐perceptions differentially for different caste groups, but in more nuanced ways than our ex‐ante beliefs. [ABSTRACT FROM AUTHOR]

In the absence of a universal health insurance mechanism, the increasing burden of out‐of‐pocket (OOP) health expenditure has become a growing concern in India. To cope with the cost of illness, people use either their savings and income, or they have to rely upon distress means of finance such as depletion of household assets, borrowings from banks and moneylenders, and contributions from family and friends. This paper analyses the changes that have taken place in the incidence and covariates of distress financing in India by using data from National Sample Survey Organisation for the years 2004 and 2014. Results indicate that during this period the incidence of distress sources as a means to finance OOP health expenditure has hovered around 50%. Further, the results reveal a significant socioeconomic gradient in the incidence of distress financing. Socioeconomic and health‐related covariates significantly impact the likelihood of distress financing as a means to cope with OOP health expenditure. The results indicate the need for government action to formulate a comprehensive plan through an increase in public spending on health care that will improve the quantity and quality of the public health‐care system and enhance the scope of health insurance in India. [ABSTRACT FROM AUTHOR]

We examine whether poor efficiency of the judicial system can explain the sluggish growth of contract‐intensive manufacturing in India. We use a large set of fixed effects to address the potential endogeneity problem. More important, we contribute to the literature by exploiting the time dimension of the data, including the use of a conventional "within" estimator, and by employing three different measures of judicial efficiency. Our results, confirm the hypothesis that a more efficient judicial system facilitates development of industries with a higher degree of "relationship specificity." This finding, combined with the lack of significant improvement in institutional quality in the country since the early 1990s, provides one explanation for comparative disadvantage of India's contract‐intensive manufacturing sectors which also tend to be sectors producing complex manufacturing goods. [ABSTRACT FROM AUTHOR]

The paper examines the effect of inequality on growth among the subnational states in India. Theoretically, growth of the regional economy is driven by productive public investment in the provision of health and education services financed by a linear output tax, and the optimum tax rate is determined by the median voter. In contrast to existing results, the authors obtain an ambiguous relationship between initial inequality and subsequent economic growth. Analysis of the Indian state-level data suggests that rural inequality influences growth of total output more than urban inequality, and does so negatively. The indicator of intersectoral inequality is more important in explaining sectoral output growth. [ABSTRACT FROM AUTHOR]

Abstract What will be the domestic growth and distributional effects of agricultural trade liberalization in India? How fast should Indian agriculture be liberalized and what policies should characterize the transition? This paper uses Indian agriculture to analyze medium-term transition problems that arise in many major economic reforms. Employing a dynamic applied general-equilibrium model, the paper focuses on the implications for policy design of the absence of efficient capital and labor markets and on the distributional consequences of economic reform in the presence of realistic limits on available intervention instruments. The key finding is that trade adjustment should be supplemented by policies that raise land productivity and, because this takes time, the adjustment should be gradual. [ABSTRACT FROM AUTHOR]

The paper examines the problem of excess mortality of females in India. The determinants of gender–specific child survival are investigated through the traditional household production model pioneered by Becker, which is extended to include publicly provided goods as fixed inputs in production decisions. The introduction of government–provided goods provides an avenue for investigating the influence of the state on household decisions. Gender–specific child survival equations are estimated using a robust “seemingly unrelated regression” method. Results using 1981 Indian Census data indicate that increases in female literacy and female labor force participation increase female child survival in rural India. Furthermore, higher ratios of female to male medical technicians are associated with higher female child survival relative to males. This paper demonstrates that a large and effective role exists for government to address excess female morality. [ABSTRACT FROM AUTHOR]

The impact of trade liberalization on productivity growth is still an empirical issue; the theoretical literature is as yet unclear on the direction of any such association. This paper develops an analytical framework and employs it to empirically test whether trade liberalization in Indian manufacturing has raised total factor productivity (TFP) growth. The answer is in the affirmative. The results also support a key postulate of the new growth theories, that liberalization of the intermediate-good sectors has a larger favorable impact on TFP growth than that of the final-good sectors. [ABSTRACT FROM AUTHOR]

There is a growing literature on the importance of persistent regional inequalities in developing countries, with evidence that the lack of convergence in incomes across regions is associated with a rise in conflict and social unrest. However, there is a relative paucity of literature on the stochastic characteristics of gross domestic product at the sub‐national level. In this paper we identify new stochastic properties of Indian states' gross domestic product between 1960 and 2019 using a fractional stochastic convergence approach. We test for fractional stochastic convergence in relative incomes in order to identify high persistence and mean reversion. Interval estimates of the largest autoregressive coefficient for the relative incomes of Indian states are wide, thus including many alternatives that are persistent. Interval estimates of the half‐life of relative income shocks suggest that in several cases shocks die out within 0–10 years. Finally, we estimate a fractionally integrated model and obtain mixed evidence of mean reversion and non‐stationarity, with six out of 16 states experiencing mean reversion. These results are highly encouraging and contradict earlier studies which show long‐term divergence and polarization of regional incomes across Indian states, and are thus of great relevance to policy‐makers. [ABSTRACT FROM AUTHOR]

This paper estimates an earnings function for male workers belonging to the Indian corporate sector. The model allows for differential rates of return to schooling and distinguishes tenure from total labor market experience. The rate of return to schooling is found to be low up to the junior level, increases significantly at the secondary and undergraduate levels, but sharply declines at the masters level. Seniority and firm-specific factors are found to be important determinants of earnings. When years of unemployment and informal experience are incorporated, earnings of low-education workers appear to be driven entirely by formal-sector experience. [ABSTRACT FROM AUTHOR]

There is a strong political opinion in India in favour of replacing caste based affirmative action with an economic class based one. We contribute to this debate by looking at the interaction of caste and wealth in school choice. We show that too rich and too poor parents behave in the same way irrespective of their caste identities—rich parents sending their children to private schools while poor parents choosing public schools for their children. The caste identity, we find, plays a role for the school choice decision made by the parents belonging to the economic middle class. Among the economic middle class parents, the ones from the privileged castes send their children to private schools, while the children of the parents from the disadvantaged castes are sent to public schools. The result is robust to alternative definitions of privileged and disadvantaged castes. For school quality choice, however, we find a monotonic relationship between wealth and school quality. [ABSTRACT FROM AUTHOR]

Employment protection legislation (EPL) is designed to promote securityers by placing restrictions on firing, but it generates unintended consequences. With India as a setting, I argue that EPL shifts jobs from younger to older workers in two ways: by discouraging the hiring of unproven young workers and by preventing the firing of low‐productivity workers. The identification strategy is motivated by Rajan and Zingales (1998): I assume that EPL is more binding in those manufacturing sectors where the involuntary separation rate in other countries is high. The data show that older workers are more likely to have formal jobs, and the effect is strongest in high‐firing sectors, which indicates that EPL shifts jobs from young to old. Additionally, EPL reduces plant‐level total factor productivity, and this effect is seen only in plants which are large enough to fall within the purview of EPL, which provides a useful placebo test. [ABSTRACT FROM AUTHOR]

Drawing data from the most recent wave of the India Human Development Survey and the year of the first election with reserved seats for women, I estimate the effect of the Panchayati Raj institutions on child marriage. In India, marriage traditions dictate that two ceremonies take place: the wedding and the gauna ceremony. These differ in timing and purpose. After the wedding, the bride and groom do not necessarily live together. The gauna ceremony indicates the start of marital life and the consummation of the marriage. Results indicate that women in local government decrease the likelihood of child marriage, and delay the age at first marriage and the gauna ceremony. Delaying marriage has important policy implications for both the bride and her future children as it improves education, autonomy over fertility, and health. The results indicate that after 18 years of implementation, exposure to women in government can reduce the prevalence of child marriage. [ABSTRACT FROM AUTHOR]

This paper examines the impact of economic liberalization on interregional inequality in India. It has been observed in many studies that interregional inequality in India has been steadily increasing over time. This paper is a further confirmation of this result. We have tried to locate the cause of rising interregional inequality within the production structure of the economy and observed that it is positively and systematically related to the cross-regional inequalities in agriculture and manufacturing. This systematic relationship has further been examined from a structuralist viewpoint to unravel the factors determining manufacturing production across regions where we have found that trade openness is the key factor determining the manufacturing share in income across the regions. Our further enquiry into manufacturing and trade patterns has shown that the Herfindahl index of concentration has been increasing over time on both counts. This result, along with the findings of the structuralist model about disproportionate growth of manufacturing across regions, provides an explanation of the cause of rising interregional inequality in India. [ABSTRACT FROM AUTHOR]

This paper examines the impact of foreign aid on the process of economic development in India by controlling for the degree of financial liberalization. A composite index is constructed using the method of principal component analysis to capture the joint influence of various financial sector policies. The results show that while foreign aid exerts a direct negative influence on output expansion, its indirect effect via financial liberalization is positive. Therefore, an important implication of the findings in this paper is that adequate liberalization in the financial system of the host country is a crucial requirement for effective foreign aid. Our results are robust to a number of control variables and estimation techniques. [ABSTRACT FROM AUTHOR]

Using household information in the National Family and Health Survey (NFHS) 1992/93 data, this paper examines regional variations in intercaste disparity in India. Based on five variables that are indicators of the standard of living of the three major caste/tribe groups identifiable in the data, a "caste deprivation index" is constructed that can be reversed to read as a "caste development index." Mapping the regional variation in this index, the paper makes a plea for focusing on caste as an essential ingredient in the study of stratification patterns in India's population. [ABSTRACT FROM AUTHOR]

The paper uses the theoretical framework of the theory of tax reform to analyze whether a "small" change in an existing food subsidy program can be both welfare-improving and revenue-neutral. It shows how existing econometric methods can be adapted to estimate demand parameters even when household-level data exhibit little price variation because the government controls food prices. The methodology is used to estimate welfare changes from shifting a rupee of subsidy on existing commodities to coarse cereals in the Indian public distribution system. [ABSTRACT FROM AUTHOR]

Abstract: We develop a measure of unemployment that takes into account both the duration and intensity of unemployment. This measure satisfies several desirable properties, including distribution sensitivity, which deals with differences among the unemployed. It is particularly suited to developing countries because individuals in these countries display considerable variation in labor force participation, unemployment duration, and unemployment intensity. It can also be decomposed into mean and variance components and contributions to unemployment by various subgroups of the population. We use this measure and data from National Sample Surveys on employment and unemployment to understand unemployment in India during the period 1993 to 2012. We show that unemployment has generally fallen, although the distribution of unemployment has worsened. Moreover, unemployment is driven to a greater extent by higher educated groups; the unemployment among these groups is also fairly substantial. We explain these findings and suggest some policies. [ABSTRACT FROM AUTHOR]

A stylized prediction of the development economics discourse is that informality will disappear with development, and yet in the last 20 years conventional measures of informality, far from declining, have either remained stagnant or have actually increased. This includes countries such as India where economic growth has been at historically high levels. What exactly is informality and what are its magnitudes and trends? What are the causes of informality and why is it not decreasing as predicted by standard theories of development? What are the consequences for inclusive economic growth of a large and increasing informal sector? What are feasible and desirable policy responses to informality? These are the questions that motivate this broad based overview of informality. The questions will be addressed based on recent and ongoing research on India and globally. [ABSTRACT FROM AUTHOR]

We investigate within‐family inequalities in human capital accumulation in India. Indicators of the children's current stock of human capital and of investment into their continued human capital accumulation are analyzed, distinguishing between time investments and pecuniary investment into school quality. We employ a within‐family model using sibship fixed effects, and find mostly negative birth order effects; that is, earlier‐born children are better off. However, for time investments there is a tendency toward more positive birth order effects, especially in poor and large families. This suggests that that opportunity cost of child time matters; in poor and large families the older, more productive, siblings often need to work. The most plausible explanation for negative birth order effects in general is resource dilution at an early age. Older siblings were only children at an early age, and therefore benefited from more parental resources. [ABSTRACT FROM AUTHOR]

We highlight an overlooked channel of disease transmission in developing countries: dirty drains. We make the case that sanitation efforts should move to improve the condition of drains to build on increased toilet provision since they are a key transmission channel for waterborne diseases. We develop an economic model of sanitation externalities that incorporates the role of drains and then empirically examine the relationship between the sanitary quality of neighborhood drains and household ill‐health incidence using a primary survey of 1,530 households from rural Uttarakhand, India. We find a strong and positive association between household ill‐health incidence and dirty neighborhood drains, controlling for household toilet usage, community‐level toilet availability, and an array of other household attributes. We employ a variety of robustness checks to validate our findings. Our findings suggest that bringing the policy focus to overall sanitation infrastructure will have substantial health returns. [ABSTRACT FROM AUTHOR]

We estimate the relationship between parental aspirations and child private‐school enrollment using longitudinal data on children from India aged 8–22 years and instrumental variables that address a number of possible biases in the estimation for a causal interpretation. We find that children whose parents aspire for them to complete university are 21% more likely to attend a private school at age 12 and that this persists through to age 15. Our results also suggest that children living in wealthier households and in communities with higher wages are more likely to be enrolled in private schools at both age 12 and 15 years. We further find that children whose parents aspire for them to complete university are more likely to have done so by age 22 years. Overall, our findings highlight the scope for improving access to private schools among the poor through relaxing associated external and internal constraints. [ABSTRACT FROM AUTHOR]

Using a nationally representative longitudinal survey and both absolute and relative measures of mobility, we examine the differences in income mobility across social groups in rural India over 1993–2004 and 2004–2011. We find significant differentials in income mobility that mirror the historical Indian caste system hierarchy. Conditional on having similar rankings in base‐period income distribution, the Forward Hindu Caste households have the highest (lowest) probability of upward (downward) income mobility, followed by the Other Backward Caste, Scheduled Caste, and Scheduled Tribe households. Moreover, these differentials in mobility are only partially explained by differences in household characteristics. We find similar but smaller differentials in mobility across social groups in Urban India. We also find that urban population witnessed a higher (lower) upward (downward) mobility during 2004–2011 compared with rural population. Furthermore, we find similar differentials in mobility using consumption as a measure of well‐being. [ABSTRACT FROM AUTHOR]

Information provision for social welfare via cheap technological media is now a widely available tool used by policymakers. Often, however, an ample supply of information does not translate into high consumption of information due to various frictions in demand, possibly stemming from the pecuniary and non‐pecuniary cost of engagement, along with institutional factors. We test this hypothesis in the Indian context using a unique data set comprising 2 million call records of enrolled users of ARMMAN, a Mumbai‐based nongovernmental organization that sends timely informational calls to mobile phones of less‐privileged pregnant women. The strict lockdown induced by COVID‐19 in India was an unexpected shock on engagement with m‐Health technology, in terms of both reductions in market wages and increased time availability at home. Using a difference‐in‐differences design on unique calls tracked at the user‐time level with fine‐grained time‐stamps on calls, we find that during the lockdown period, the call durations increased by 1.53 percentage points. However, technology engagement behavior exhibited demographic heterogeneity increasing relatively after the lockdown for women who had to borrow the phones vis‐à‐vis phone owners, for those enrolled in direct outreach programs vis‐à‐vis self‐registered women, and for those who belonged to the low‐income group vis‐à‐vis high‐income group. These findings are robust with coarsened exact matching and with a placebo test for a 2017–2018 sample. Our results have policy implications around demand‐side frictions for technology engagement in developing economies and maternal health. [ABSTRACT FROM AUTHOR]

India institutionalized school‐based management in 2009 by requiring all government schools to constitute school management committees, primarily staffed by parents, that would make decisions on school‐related issues. This article utilizes school‐level panel data from the state of Uttar Pradesh and uses a matched difference‐in‐difference estimation methodology to examine the effect of this policy on the provision of basic school infrastructure and services in government schools. It finds evidence that the policy resulted in improving the provision of libraries and medical checkups for students. [ABSTRACT FROM AUTHOR]

Researchers have observed that women in developing countries often make more development friendly choices than men. We implemented experimental tasks among a large and diverse sample of married individuals in rural India and found women to make on average more patient and more risk-averse choices than men. We find important heterogeneity in gender differences in patience: there is no difference for spouses with no children but patience levels diverge if there are small children in a family. The findings imply that conflicting spousal preferences are most likely in poor families with children. [ABSTRACT FROM AUTHOR]

In a general equilibrium model of fertility with higher economic returns to sons relative to daughters, parents choose overall fertility and the gender composition of their children. Son preference is partially endogenized to reflect how relative scarcity of females raises their value even while social norms and lack of economic opportunities lessen their value. These competing factors lead to an oscillating sex ratio. Model simulations demonstrate that son preference increases fertility, but that sex selection reduces fertility in the presence of son preference. The results suggest that effectively banning sex‐selective abortions in places such as India, which has struggled to enforce its existing ban on the practice, is insufficient and may have unintended consequences such as slowing fertility decline, reducing quality investment in girls, and slowing human capital accumulation and economic growth. Improving economic opportunities for women will increase the value placed on daughters, thereby improving the sex ratio and human capital investment in all children. [ABSTRACT FROM AUTHOR]

Decisions within the household determine the allocation of resources. Theory suggests that the more autonomous women are within the household, the greater influence they will have in that allocation. This paper utilizes several measures of a woman's autonomy within the household. It is hypothesized that the greater the woman's autonomy, the more likely she will be to visit a doctor, rather than other traditional sources of healing/care, when ill. This hypothesis is tested using data drawn from Uttar Pradesh and Bihar in India. The results lend support to the importance of autonomy for a woman in increasing her likelihood of visiting a medical doctor when ill. Additionally, the results show that socio-economic differences go a long way in explaining differences in healthcare choices for the sick. [ABSTRACT FROM AUTHOR]

We evaluate empirically the impact of the dramatic 1991 trade liberalization in India on the industry wage structure. The empirical strategy uses variation in industry wage premiums and trade policy across industries and over time. In contrast to most earlier studies on developing countries, we find a strong, negative, and robust relationship between changes in trade policy and changes in industry wage premiums over time. The results are consistent with liberalization-induced productivity increases at the firm level, which get passed on to industry wages. We also find that trade liberalization has led to decreased wage inequality between skilled and unskilled workers in India. This is consistent with the magnitude of tariff reductions being relatively larger in sectors with a higher proportion of unskilled workers. [ABSTRACT FROM AUTHOR]

This paper analyses inequality and poverty in India within the context of caste-based discrimination. It does so by decomposing the difference between (caste) Hindu and Scheduled Caste (SC) and Scheduled Tribe (ST) households in: their average household incomes; their probabilities of being in different income percentiles; their probabilities of being at different levels of poverty into: a “discrimination effect”, which stems from the fact that a household's income level, into which its (income-generating) profile translates, depends on whether it is SC/ST; an “attributes (or residual) effect” which stems from the fact that there are systematic differences between SC/ST and Hindu households in their (income-generating) profiles. The results, based on unit record data for 28,922 households, showed that at least one-third of the average income/probability differences between Hindu and SC/ST households was due to the “unequal treatment” of the latter. [ABSTRACT FROM AUTHOR]

Abstract Has the efficiency of firms in India improved since its liberalization in 1991? The authors attempt to answer this question by analyzing the determinants of firm-level efficiency in six manufacturing sectors in India while focusing on the effects of liberalization and domestic competition. They find that there was an increase in overall efficiency in the post-reform period in India in five out of the six sectors. While imports do not seem to improve efficiency, liberalization did increase efficiency in four of the sectors. [ABSTRACT FROM AUTHOR]

Multifibre agreement (MFA)–endorsed safe textile export markets were abolished in 2005. For India, scholars anticipated both enormous potential gain from the post‐MFA free market and the threat of inevitably increasing competition. Researchers also emphasized selected channels to succeed, including effective exploitation of scale economies and technological upgradation, for fruitful market gain in this regard. Against this backdrop, we study the Indian textile industry from 1999–2000 through 2014–2015 to examine (1) the role of economies of scale to achieve efficiency gain and therefore competitiveness, (2) the industry's efforts toward technological upgradation, and (3) its overall sustainability through net export expansion, profitability, and total factor productivity (TFP) growth. Results show that (1) size‐efficiency nexus is positively significant and therefore the industry can achieve further efficiency gain and competitiveness by expanding scale of operations at the firm level; (2) despite considerable increase in R&D investments, the industry's overall production technological status has deteriorated in the post‐MFA regime and therefore has substantial scope of improvement, possibly through more effectively using the prevailing technological upgradation funds scheme (TUFS) and other official arrangements; and (3) although India achieves sizeable net export expansion and TFP gains, the industry's profitability scenario seems bleak and requires further attention for its better sustainability. [ABSTRACT FROM AUTHOR]

This article assesses the nexus between land and income inequality among agricultural households in rural India based on a national survey of farmers. The study also assesses the contribution of other sources of income to this inequality. At the onset, we estimate the extent of land and income inequality using the Gini coefficient, Palma ratio, and quantile distribution. Further, we examine the effects of income components and sociodemographic, production theory‐related, and geographic variables on total income inequality among agricultural households at the national level using regression‐based inequality decomposition (RBID) analysis of income function. The evidence indicates that both land and income inequality are the maximum in the agriculturally developed states. The results of RBID show that land size explains the highest share of income inequality among agricultural households, followed by crop productivity at the household level. The analysis further statistically validates that the share of wage and livestock income has an inverse relationship with total inequality among agricultural households. These results provide firm empirical evidence to assess policies suggested to increase alternative sources of income among land‐poor petty producers. [ABSTRACT FROM AUTHOR]

The main objective of this study is to identify the socioeconomic, meteorological, and geographical factors associated with the severity of COVID‐19 pandemic in India. The severity is measured by the cumulative severity ratio (CSR)—the ratio of the cumulative COVID‐related deaths to the deaths in a pre‐pandemic year—its first difference and COVID infection cases. We have found significant interstate heterogeneity in the pandemic development and have contrasted the trends of the COVID‐19 severities between Maharashtra, which had the largest number of COVID deaths and cases, and the other states. Drawing upon random‐effects models and Tobit models for the weekly and monthly panel data sets of 32 states/union territories, we have found that the factors associated with the COVID severity include income, gender, multi‐morbidity, urbanization, lockdown and unlock phases, weather including temperature and rainfall, and the retail price of wheat. Brief observations from a policy perspective are made toward the end. [ABSTRACT FROM AUTHOR]

Adequate nutrition is generally regarded as a core dimension in any evaluation of well‐being. In the context of India, a country with a high prevalence of poor nutrition, there is a dearth of nutrition studies with adequate coverage and comparability. Using primary data on food consumption from a village in a poorer state of India, we study the consumption of five key nutrients, namely, calories, protein, carbohydrates, calcium and iron. Among the various determinants of nutrition, we find that expenditure has a significant impact on nutrition and the expenditure elasticity of nutrition is comparatively high for all the key nutrients. By correcting for potential endogeneity, we demonstrate a causal link from expenditure and food subsidy provided by the public distribution system to nutritional intake. There is some evidence that household characteristics such as household size and gender of the household head matter for nutrition; however, they are not robust under various specifications. [ABSTRACT FROM AUTHOR]

The growing U.S. R&D internationalization has historically been concentrated in developed countries. However, in the past few decades, the internationalization has moved toward less‐developed countries (LDCs), particularly Brazil, China, and India. What location factors are making some LDCs more "inviting" for U.S. R&D offshore? To answer this first question, we constructed a panel data using secondary data from the U.S. Bureau of Economic Analysis regarding the R&D investment made by the majority‐owned foreign affiliates of U.S. parent companies in 71 countries. We then applied a Heckman two‐step correction for selection bias test. The results highlight some important differences between developed countries' and LDCs' attractiveness. Based on these initial results, we conducted a detailed analysis of the determinants of U.S. R&D investments in Brazil, China, and India, which revealed that China's determinants mostly match those found in more developed countries. [ABSTRACT FROM AUTHOR]

We estimate attendance gains for primary school children from a cost‐neutral change in the design of India's school meal program. Municipal schools in the capital region of Delhi shifted from packaged food to cooked meals in 2003, with no change in payments to meal providers. Using the staggered implementation of this transition and child‐level panel data, we estimate a 3 percentage point increase in average monthly attendance, with large effects for early grades. We also find that girls are more responsive to the cooked meals, but because they attend morning schools, whereas boys attend afternoon schools, this may simply reflect benefits from better‐timed meals. Our study illustrates how better‐designed transfers can improve outcomes within tightly constrained budgets. [ABSTRACT FROM AUTHOR]

The study finds a differential impact of different types of natural disasters on education and cognitive ability of children aged 12 to 15 years in Ethiopia, India, Peru, and Vietnam using a Young Lives data set and child fixed‐effects regression. Floods tend to cause more harmful effects on children's education than droughts, frosts, and hailstorms. Exposure to floods reduces the number of completed grades of children in Ethiopia, India, and Vietnam. For the case of Vietnam, exposure to floods also decreases school enrollment, and cognitive ability scores of children. Although floods do not have a significant effect on children in India, droughts, frosts, and hailstorms have a significantly negative effect on cognitive ability test scores of children. In Peru, the effect of disasters on children's education is small and not statistically significant. [ABSTRACT FROM AUTHOR]

This paper presents an analysis of the determinants of school participation in rural north India, based on a recent household survey which includes detailed information on school characteristics. School participation, especially among girls, responds to a wide range of variables, including parental education and motivation, social background, dependency ratios, work opportunities, village development, teacher postings, mid-day meals and infrastructural quality. Mid-day meals are particularly effective: the provision of a mid-day meal in the local school roughly halves the proportion of girls excluded from the schooling system. School quality matters, though it is not related in a simple way to specific inputs. [ABSTRACT FROM AUTHOR]

This paper investigates the incidence of poverty in Indian towns and cities of various sizes of population. It also tests the hypothesis that larger towns and cities, because of their size, are capable of supporting more complex economic activities, improving labor productivity, and hence lowering the incidence of poverty. In particular, similar levels of education, ceteris paribus, have a larger impact in bigger conurbations. [ABSTRACT FROM AUTHOR]

Abstract: We examine the impact of political reservations for women to analyze the effectiveness of female leaders in executing public works under NREGA, India's largest public works program. The 73rd Amendment to the Indian Constitution mandated that one third of Panchayat seats be randomly assigned to women. Using detailed data on Panchayat elections, employment, and public works expenditure for nine districts in Uttar Pradesh, we find female Panchayat leaders significantly increase the demand for work under NREGA. We also find that women leaders take up projects that directly benefit women, such as water control and harvesting. Finally, we find no difference between male and female leaders in generating employment or efficiently implementing public works under NREGA. [ABSTRACT FROM AUTHOR]