In this paper the issue of high dropout rates in India is examined which has adverse implications for human capital formation, and hence for the country’s long term growth potential. Using the 2004-05 National Sample Survey employment-unemployment survey data, transition probabilities of...

Using a model of O-ring production function, the paper demonstrates how certain communities can get caught in a low-literacy trap in which each individual finds it not worthwhile investing in higher skills because others are not high-skilled. The model sheds light on educational policy. It is...

Education is an important component of economic activity, although investment in education is only one of the many forms of investment in human capital. The idea behind this is that investment in human beings, like investment in tangible forms of capital such as buildings and industrial...