English language premium: Evidence from a policy experiment in India
Tanika Chakraborty, Indian Institute of Technology Kanpur,, India ; Shilpi Kapur Bakshi, The Energy and Resources Institute (TERI),, India
Economics of Education Review Volume 50, Number 1, ISSN 0272-7757 Publisher: Elsevier Ltd
In this paper, we estimate the English premium in a globalizing economy, by exploiting an exogenous language policy intervention in India that abolished teaching of English in public primary schools. Our results indicate that a 10% lower probability of learning English in primary schools leads to a decline in weekly wages by 8%. On an average, this implies 26% lower wages for cohorts exposed to the policy change. We find supporting evidence that occupational choice played an important role in determining this wage-gap.
Chakraborty, T. & Bakshi, S.K. (2016). English language premium: Evidence from a policy experiment in India. Economics of Education Review, 50(1), 1-16. Elsevier Ltd.