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Disability and Returns to Education in a Developing Country

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  • Kamal Lamichhane

    (Research Center for Advanced Science and Technology (RCAST), The University of Tokyo)

  • Yasuyuki Sawada

    (Faculty of Economics, University of Tokyo)

Abstract

In this paper, we estimate wage returns to investment in education for persons with disabilities in Nepal, using information on the timing of being impaired during school-age years as identifying instrumental variables for years of schooling. We employ unique data collected from persons with hearing, physical, and visual impairments as well as nationally representative survey data from the Nepal Living Standard Survey 2003/2004 (NLSS II). After controlling for endogeneity bias arising from schooling decisions as well as sample selection bias due to endogenous labor participation, the estimated rate of returns to education is very high among persons with disabilities, ranging from 19.4 to 33.2%. The coexistence of these high returns to education and limited years of schooling suggest that supply side constraints in education to accommodate persons with disabilities and/or there are credit market imperfections. Policies to eliminate these barriers will mitigate poverty among persons with disabilities, the largest minority group in the world.

Suggested Citation

  • Kamal Lamichhane & Yasuyuki Sawada, 2009. "Disability and Returns to Education in a Developing Country," CIRJE F-Series CIRJE-F-645, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2009cf645
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    References listed on IDEAS

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    Cited by:

    1. Jose Ramon Albert & Soya Mori & Celia Reyes & Aubrey D. Tabuga & Tatsufumi Yamagata, 2015. "Income Disparity among Persons with Disabilities, Assessed by Education and Sex: Accentuated Gender Difference Found in Metro Manila, the Philippines," The Developing Economies, Institute of Developing Economies, vol. 53(4), pages 289-302, December.
    2. Sung Jin Kang & Yasuyuki Sawada & Yong Woon Chung, 2017. "Long-term consequences of armed conflicts on poverty: the case of Cambodia," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 519-535, October.
    3. Albinowski, Maciej & Magda, Iga & Rozszczypała, Agata, 2023. "The Employment Effects of the Disability Education Gap in Europe," IZA Discussion Papers 15932, Institute of Labor Economics (IZA).
    4. Mizunoya, Suguru & Mitra, Sophie & Yamasaki, Izumi, 2018. "Disability and school attendance in 15 low- and middle-income countries," World Development, Elsevier, vol. 104(C), pages 388-403.
    5. Suguru Mizunoya & Izumi Yamasaki & Sophie Mitra, 2016. "The Disability Gap in Employment Rates in a Developing Country Context: New Evidence from Vietnam," Economics Bulletin, AccessEcon, vol. 36(2), pages 771-777.
    6. Daniel J. Henderson & Andrew Houtenville & Le Wang, 2017. "The Distribution of Returns to Education for People with Disabilities," Journal of Labor Research, Springer, vol. 38(3), pages 261-282, September.
    7. Lamichhane, Kamal & Tsujimoto, Takahiro, 2017. "Impact of Universal Primary Education Policy on Out of School Children in Uganda," Working Papers 153, JICA Research Institute.
    8. Lamichhane, Kamal & Ballabha, Damaru & Kartika, Diana, 2014. "Analysis of Poverty between People with and without Disabilities in Nepal," Working Papers 77, JICA Research Institute.
    9. Letícia Xander Russo & Joilson Dias, 2016. "The Health Influence On Returns To Education In Brazil: A Nonlinear Approach," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 200, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    10. Lamichhane, Kamal & Kawakatsu, Yoshito, 2015. "Disability and determinants of schooling: A case from Bangladesh," International Journal of Educational Development, Elsevier, vol. 40(C), pages 98-105.
    11. Bose, Bijetri & Heymann, Jody, 2020. "Do inclusive education laws improve primary schooling among children with disabilities?," International Journal of Educational Development, Elsevier, vol. 77(C).

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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