Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location. Center Discussion Paper.

There is hardly any estimate of returns to schooling in India based on national level representative data for the recent period. This paper provides estimates of the economic returns to education in India by gender, age cohort, and location (by rural-urban) for the most recent period 1993-94, and also evaluates the changes in returns over a period of time from 1983-94 using national level representative household survey data. These are the only national surveys in India that provide information on the wages and some of the labor market characteristics of individuals. The data show that the returns to education increases up to the secondary level and declines thereafter. There is evidence of substantial gender and rural-urban differences in the returns to schooling. The returns to women's education for the primary and middle levels have declined while those for secondary and college levels have increased during 1983-94. Also discussed briefly are the structure of education and the labor market in India. Includes 6 notes. (Contains 21 references and 13 tables.) (BT)