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(Em)Powered by Science? Estimating the Relative Labor Market Returns to Majoring in Science in High School in India

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  • Roychowdhury, Punarjit

Abstract

Despite widespread belief that majoring in science in high school has a greater payoff in the Indian labor market than majoring in business/humanities, there is no hard evidence to substantiate this thought. Here I provide the first evidence of the causal effect of majoring in science on individuals’ labor market outcomes relative to majoring in business/humanities using microdata from India. Estimating the causal effect, however, is a formidable task since selection into high school major is nonrandom and exclusion restrictions are unavailable. I circumvent these difficulties by employing an econometric technique that does not rely on valid exclusion restriction for identification. I find that majoring in science has a negative causal effect on individuals’ employment probability. Conditional on being employed, however, majoring in science has a positive causal effect on individuals’ earnings and probability of being engaged in a professional occupation. These findings suggest, in contrast to conventional wisdom, the labor market effects of majoring in science in high school in India is not a plain tale of ‘science premium’ - while majoring in science might lead to relatively better labor market outcomes for those who are able to find employment, finding employment itself is more difficult for science majors.

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  • Roychowdhury, Punarjit, 2021. "(Em)Powered by Science? Estimating the Relative Labor Market Returns to Majoring in Science in High School in India," Economics of Education Review, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:ecoedu:v:82:y:2021:i:c:s0272775721000376
    DOI: 10.1016/j.econedurev.2021.102118
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    More about this item

    Keywords

    High School Major; India; Labor Market Outcomes; Science; Selection;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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