Econometric Analysis of Returns to Education of Rural and Urban Labour Markets Workers in Tamil Nadu

The objective of this study was to empirically evaluate the returns to education of rural and urban labour markets workers in Tamil Nadu using the IHDS data with appropriate Econometric models. First, the present study estimated the earning functions of the rural and urban market's workers by OLS technique and standard Mincerian earning functions. Secondly, the quantile regression method was also used to examine the evolution of wage inequality. The findings of the study showed that the effects of education and experience on the log of hourly wages were positive, and these coefficients were statistically significant. The returns to education increased with the level of education and differed among the workers of rural and urban labour markets. The results showed that the rates of returns to primary, middle and higher secondary were higher in the urban market, whereas those of secondary and graduation were higher in the rural market. The study revealed that the effect of education was not the same across the rural and urban wage distribution. The rate of returns differed considerably within education groups across different quantiles of the wage distribution.

2018 ◽  
Vol 7 (1) ◽  
pp. 27-44 ◽  
Author(s):  
Restuning Dyah Widyanti

It is essential to the government to recognize the factors causing the increasing trend of income inequality in Indonesia since the Gini coefficient increased between 1996 and 2016. Moreover, wage inequality, which represented by high percentile and low percentile of income, also shows widening gap since 2003. This study focuses on the factors of wage inequality acceleration through the supply side approach that follows the Mincerian wage equation model. Specifically, this paper aims to investigate the association between the return to education and wage inequality in Indonesia. The quantile regression method is applied to compute the return on the investment at different points of the wage distribution. The main finding is that education contributes to an increasing wage inequality due to the significant variation in the rate of return to education in different quantile and as increasing wage dispersion within the same education.DOI: 10.15408/sjie.v7i1.6071


2015 ◽  
Vol 7 (3) ◽  
pp. 31 ◽  
Author(s):  
Tiago Sequeira ◽  
Marcelo Santos

<p>We study the relationship between returns to education and the wage distribution in Europe and we find evidence for a new fact: A hump-shaped relationship between returns and the wage distribution. This hump-shaped relationship between returns to education and the wage distribution means that investments on education contributes to increase inequality between the lower bound of the wage distribution and the median (roughly) but for the richer part of the wage distribution, education tends to decrease wage inequality. There is also evidence of a non-monotonous relationship between returns to tenure and gender, on one side, and the wage distribution, on the other side.</p>


2018 ◽  
Vol 3 (4) ◽  
pp. 18
Author(s):  
Feng Wang ◽  
Hao Wu

This paper focuses on the returns to education in China, and it aims to determine the returns rate difference between those in the rural and urban areas. Mincer’s model has been used as the base for the returns rate calculation. OLS has been chosen as the estimator for the regression analysis. The data set selected for analyzing was CHIP 2013, which is one of the latest national level education and income surveys conducted in China. The empirical analysis results showed that the rate of returns to education for the general samples was 13.9%. This, therefore, was higher than the rate (around 10%) in 2000-2010 in China. Meanwhile, the significant difference between rural (3.7%) and urban (25.6%) areas has been detected. The gender equality testing showed that in rural areas, the rate of returns to education for females (9.1%) was much higher than males (2.5%). The results provided an overview of the current situation regarding the educational investment in China. It also pointed out the income and educational inequality between rural-urban and male-female.


2014 ◽  
Vol 6 (1) ◽  
pp. 32-36
Author(s):  
Ghulam Sarwar ◽  
Muhammad Saeed Hashmi .

This study investigates nexus between returns to education and earning inequality in Pakistan. The study utilizes quantile regression method to demonstrate how effect of different levels of education varies across conditional earning distribution. The results show that education plays a significant role in determination of within group earning inequality at all levels of education. Within group earning inequality is higher within the individuals having tertiary education as compared to the individuals having secondary and primary education. The earning inequality does not remain constant within the education groups during 2005-07. Moreover, education also causes earning inequality between educational groups. The findings of the study reveal that education has a positive effect on within as well as between groups earning inequality.


Water Policy ◽  
2006 ◽  
Vol 8 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Ramesh Bhatia ◽  
John Briscoe ◽  
R. P. S. Malik ◽  
Lindy Miller ◽  
Smita Misra ◽  
...  

The state of Tamil Nadu, India, is in the grips of a water crisis, with demand far outstripping supply. As the economy of the state grows, this crisis is going to become ever more serious. To date the focus of state water policy has been on trying to augment supplies, from within the state (even from desalinization) and from neighboring states. In addition, the water use is regulated in a way that does not encourage the highest value uses. International experience shows that supply-side measures must be complemented by demand-side measures and that practice must move away from fixed, command-and-control allocation policies towards flexible allocation mechanisms, which facilitate the voluntary movement of water from low to high-value uses. This study addresses the question of whether such a change in allocation policies is worth doing. It addresses this question by developing optimization models for each of the 17 river basins in Tamil Nadu (including an assessment of the economic value of water in different end-uses – agriculture, domestic and industry), then using an input–output model embedded in a social accounting matrix (SAM), to assess the impact of these changes on the state economy and on different rural and urban employment groups. The results suggest that a shift to a flexible water allocation system would bring major environmental, economic and social benefits to the state. Compared with the current “fixed sectoral allocation” policy, a flexible allocation policy would, in 2020, result in 15% less overall water used; 24% less water pumped from aquifers; 20% higher state income; with all strata, rich and poor, benefiting similarly, with one important exception, that of agricultural laborers.


2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.


De Economist ◽  
2021 ◽  
Author(s):  
Colja Schneck

AbstractIn this paper I analyze changes in the wage distribution in the Netherlands. I use a matched employer-employee dataset that covers the population of employees. Wage inequality increases over the period of 2001–2016. Changes in between-firm wage components are responsible for nearly the entire increase. Increases in the variance of workers’ skills and increases in worker sorting and worker segregation explain the majority of the rise in the variance of wages. These changes are accompanied by a pattern where variation in educational degree and firm average wages become more correlated over time. Finally, it is suggested that labor market institutions in the Netherlands play an important role in mediating overall wage inequality.


2002 ◽  
Vol 27 (3) ◽  
pp. 149-176 ◽  
Author(s):  
B.S. Bhatia ◽  
Anupam Bawa

The region of Punjab and Chandigarh does not show the type of differences in consumer behaviour that are normally expected in a rural urban market comparison in India. In fact, the rural market shows more similarities than differences with the urban market. Many of these similarities are in those aspects about which earlier writers had found great differences, e.g. frequency of purchase, type of distribution outlet patronised, brand loyalty, exposure to advertisements, to name but a few. No stark differences in consumer behaviour were found on comparing the rural market with the urban market. The distinctive features of this region, including its prosperity and well connectedness may be responsible for these findings. The findings of this study have a bearing on the marketing strategy that should be designed for geographic region.


Author(s):  
Roselin V. ◽  
Srisanthanakrishnan V.

Background: Vector-borne diseases (VBD) remain a major public health challenge, in India. Knowledge about VBD, social, demographic and environmental factors strongly influence the vector transmission and results in major outbreaks. Hence this study was conducted to assess knowledge and practice along with environmental conditions prevailing in both rural and urban areas.Methods: Cross sectional study was conducted in rural and urban field practice area of Sri Muthukumaran Medical College and Research Institute, Chennai, during June 2018 to December 2018. A total of 472 participants with 236 participants from each urban and rural area were included. Data was collected using proforma and analysis was done using SPSS 16.Results: Knowledge about VBD like dengue was 63.6% and 76.7% among rural and urban population, respectively. Similarly malaria was known by knows 59.3% and 68.2% of rural and urban participants. Japanese Encephalitis was the least known mosquito borne disease in both the groups. (p=0.0136). Common breeding sites addressed by the rural population were artificial collected water (36.9%) and urban population was dirty water (42.8%).Conclusions: Knowledge and practice of preventing vector borne disease is still lacking among both rural and urban participants. Spreading knowledge about VBD is a part in effective vector borne disease control which can be achieved by community education alone rather than insecticides and sprays.


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