The Political Economy of Privatization of Education: Role of Local Politicians in India (with Soham Sahoo) [Revise and Resubmit]

• IZA Discussion Paper No. 17527 | Media Coverage: Business Standard, The Print

This paper investigates the role of political favouritism in the private education market. Using a close election regression discontinuity design, we estimate the causal effect of having a ruling party aligned politician on the growth of private educational institutions in India. We utilize constituency-level panel data on private and government educational institutions matched with the electoral outcomes of all state assembly elections held between 2005 and 2016. We find that constituencies represented by politicians aligned with the state ruling party have a higher growth rate in the number of private schools compared to those with non-aligned representatives. However, we do not observe any significant effect on the growth rate of government schools. Similar patterns are also found for higher education institutions. Our analysis suggests that the driving mechanism behind this phenomenon may lie in political influence over bureaucratic processes and discrepancies in the enforcement of government regulations. Furthermore, our result shows that these private schools may not necessarily offer better quality education.

Does Restricting Access to Credit Impact Learning Outcomes? Evidence from a Regulatory Ban on Microfinance in India (with Soham Sahoo) [Revise and Resubmit]

• IZA Discussion Paper No. 17404 | IIMB Working Paper No. 713/2024 | Podcast Coverage: Northeastern University, USA

This study examines how restricted access to microfinance by households affects children’s learning outcomes, utilizing a unique natural experiment that halted all microfinance operations in Andhra Pradesh (AP), India, in 2010. The analysis exploits quasi-random variation in district-level exposure to the shock in states other than AP, as the regulation affected lenders’ liquidity nationwide. We use difference-in-differences and event study designs to identify the causal effects of the shock. The findings reveal a significant and persistent decline in children’s learning outcomes, likely driven by reduced household education expenditure, a shift from private to government schooling, and decreased food expenditure affecting nutrition. Contrary to expectations, the restoration of credit access does not fully reverse these effects, highlighting the long-term consequences of short-term financial disruptions. Additionally, the impacts vary by gender and age, highlighting the need for targeted recovery policies. By focusing on the effects of regulatory restrictions rather than microfinance service provision, this study complements existing literature and provides a more comprehensive understanding of the socioeconomic impacts of microfinance.

The Influence of Teachers on the Caste Gap in English Language Education: Evidence Using Matched Student-Teacher Level Data from India (with Soham Sahoo and Pawandeep Kaur)

This study investigates the role of teachers in students’ English learning using quantitative data from two states of India. We utilize a novel dataset that independently collected data on the learning outcomes of around 9000 students studying in class nine from 205 schools at the beginning and end of the school year. This matched student-teacher level dataset allows us to empirically investigate how various teacher-related factors contribute to students’ English learning, incorporating the caste of both students and teachers in the analysis.

Does School Closure Affect Educational Outcomes? (with Tejendra Pratap Singh and Soham Sahoo)

This study examines the impact of Jharkhand’s 2017-18 school consolidation policy, which led to the closure of many sub-standard government schools. Students were reassigned to nearby schools, and teachers were redistributed to maintain the student-teacher ratio. The study evaluates how these changes in classroom composition, student-teacher ratios, and school distances affect educational outcomes.

Impact of 50 Years of Floods on Human Capital Formation in India

This study explores the impact of floods in India over the past 50 years on human capital formation, focusing on education and health. Unlike typical case studies, this study examines the cumulative effects of all floods experienced during early life stages, providing a comprehensive analysis of their impact on human capital development.

Impact of the Computerization of Public Distribution System on Household Consumption (with Tara Shankar Show and Conan Mukherjee)

This study examines the impact of supply chain computerization in Chhattisgarh’s Public Distribution System (PDS) on household cereal consumption and nutritional intake. The study finds that after computerization, households with Below Poverty Line (BPL) ration cards in Chhattisgarh bought more cereals from the PDS and less from the market, with no change in total cereal consumption.

Regional Patterns and Dynamics of Learning Outcomes in India (with Srividya Aluru and Soham Sahoo) in Chatterjee, T.B., Ghose, A., Roy, P. (eds) Risks and Resilience of Emerging Economies. India Studies in Business and Economics. Springer, Singapore (2023)

The Influence of Local Politicians in the Private Education Market (with Soham Sahoo), Ideas for India (2025)