Trade, Internal Migration, and Human Capital: Who Gains from India’s IT Boom?
Devaki Ghose
What the paper says
How do trade shocks affect welfare and inequality when human capital is endogenous? Using India’s IT boom and internal migration data, I document that IT employment and engineering enrollment increased with exports, especially in regions with larger college-age populations. I develop a spatial model featuring higher education choice and differential migration costs for college versus work. The IT boom increased welfare by 2.39%, but without educational mobility, gains would be 25% lower and regional inequality 1.5 times larger. Removing endogenous education further reduces gains by over one-third. Education policies like national scholarships could substantially reduce regional inequality from trade shocks.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.