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The Importance of Being Local? Administrative Decentralization and Human Development

Author

Listed:
  • Chaudhary, Latika

    (Naval Postgraduate School)

  • Iyer, Lakshmi

    (University of Notre Dame)

Abstract

We examine the human development consequences of transferring responsibility for public service provision to local governments in India, using state-level variation in the timing of administrative decentralization reforms. We find that devolution of the responsibility for health functions from state to local governments, without concomitant authority over personnel or taxation, results in a worsening of neonatal, infant and under-5 child mortality. Such partial devolution results in worse indicators of public health provision, as well as lower rates of primary school completion. Our results cannot be attributed to differential pre-trends, omitted variables bias, or heterogeneous treatment effects.

Suggested Citation

  • Chaudhary, Latika & Iyer, Lakshmi, 2024. "The Importance of Being Local? Administrative Decentralization and Human Development," IZA Discussion Papers 17053, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp17053
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    References listed on IDEAS

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    More about this item

    Keywords

    decentralization; infant mortality; primary schooling; local governments; India;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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