The Effects of Elite Public Colleges on Primary and Secondary Schooling Markets in India

Abstract

We present the first estimates of the effects of higher education investments on lower levels of schooling. Using the roll-out of elite public colleges in India, we show that investments in higher education increased educational attainment among school-age children. Private schools entered districts with new elite public colleges, and students switched from public to private schools. We find suggestive evidence that elite colleges led to focal investments in electricity, roads and water services reducing setup costs for private schools, and consequently, travel costs for school-going children.

Keywords: higher education, educational attainment, private schools, public infrastructure

JEL Classification: H52, I21, I23, I25, O15