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Does trade shape educational decisions? The role of initial schooling

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  • Kevin Williams

    (The University of the West Indies)

Abstract

I study the effect that international trade has on educational decisions over half-century using a panel model. Initial schooling alters the impact of trade on educational attainment. Instrumental variables estimates suggest that the effect of trade on educational attainment is increasing in countries’ initial schooling. For countries with initial schooling of 13 years, a 10 percentage point increase in trade increases schooling year by 0.32 percent. The corresponding estimate is 2.4 percent reduction in schooling year for countries with initial schooling of 6 years. I also investigate the fertility rate for both adolescent and older women as one mechanism that relates trade to educational decisions. The contribution leverages an exogenous source of variation to instrument trade.

Suggested Citation

  • Kevin Williams, 2023. "Does trade shape educational decisions? The role of initial schooling," Economic Change and Restructuring, Springer, vol. 56(5), pages 3631-3663, October.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:5:d:10.1007_s10644-023-09547-z
    DOI: 10.1007/s10644-023-09547-z
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    More about this item

    Keywords

    Initial schooling; Educational decisions; Trade; Fertility;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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