Department of Economics

Ashoka University is a private university located in Sonipat, Haryana, India, focusing on liberal arts and sciences. It was established in 2014.&nbsp;It is guided by an academic council of academics and scholars from around the world. The council sets the university&#39;s academic standard, advising on matters of curriculum, faculty hiring and research.&nbsp;

Ashoka University offers a full-time 3 (+ 1) year undergraduate programme. The University comprises of&nbsp;2500 plus students, with a mix of both national and international students.&nbsp; &nbsp;

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Ashoka University

The effect of an aggregate economic shock on human capital formation is theoretically ambiguous. When real wages fall during a recession, households face both a drop in their real incomes, as well as lower wages in available jobs. The impacts, particularly in the long run, on educational attainment and labour market outcomes is uncertain. I exploit the heterogeneous impact of an economic recession as measured by the variation in rice price increases to find that, for net consumers of rice, higher rice price increases are associated with small declines in school participation for younger children, who have limited labour market opportunities, and large declines in employment for older children, who face higher opportunity costs of schooling. The results are reversed for net producers of rice. The fall in wages protects older children from suffering adverse long-run consequences to their educational attainment. However, children who face higher wages during critical junctures in their schooling are more likely to start working and face reductions in human capital investments. These differences in investments have significant long-term effects on later-life income, employment status and sector of employment. © 2021 Informa UK Limited, trading as Taylor & Francis Group.

Journal of Development Studies

The Long Run Impact of a Macroeconomic Crisis on Schooling Outcomes

We consider a large population of firms in a market environment. The firms are divided into a finite set of types, with each type being characterized by a distinct private cost function. Moreover, the firms generate an external cost like pollution in the production process. As a result, the Nash equilibrium outcome is not socially optimal. We propose an evolutionary implementation mechanism to achieve the socially optimal outcome. In contrast to the classical VCG mechanism, evolutionary implementation does not require the planner to know or elicit any private information from firms. By imposing a tax equal to the current external damage being imposed by a firm, the planner can guide the evolution of the society toward the social optimum. The imposition of the tax generates a potential game whose potential function is the social welfare function of the model. Evolutionary dynamics converge to the maximizer of this function thereby evolutionarily implementing the social welfare maximizer.

World University root node

Dynamic Games and Applications

An Evolutionary Approach to Pollution Control in Competitive Markets

The “strength of weak ties” has been established in the context of labour market outcomes, with theoretical and empirical investigation showing how weak ties lead to an increase in mobility and job opportunities. The impact of weak ties on community organisation is less well understood. We contribute to this literature by investigating if weak ties, generated via membership of livelihood programmes, can lead to the creation or enhancement of social capital. Based on data from one of the largest independent primary surveys for India, we find that participation in self-help groups had little impact on livelihoods, but led to the creation of significant social capital, as measured by indicators related to personal efficacy and collective action. We use Entropy Balancing to estimate mean effects to tackle the problem of non-random selection into the programme. In contrast to the bulk of existing evidence on livelihood programmes that is based on small samples, our large sample size and innovative survey design allow us to detect a larger number of effects with greater certainty. We argue that the social capital generated by the programme is a significant positive impact (even though the main target of the programme is to strengthen livelihoods), as it strengthens the process of women's empowerment.

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World Development

Can weak ties create social capital? Evidence from Self-Help Groups in rural India

The paper examines political economy consequences of a third party (World Bank) intervention in India. The intervention was a capacity building initiative that trained local politicians in various governance procedures in a sample of villages. We show that the state government reacted to the intervention by allocating additional resources to program villages with aligned incumbents. Consequently, party switching by opposition incumbents in favor of the ruling party went up significantly in program villages. Moreover, the reelection rate of opposition party incumbents went down due to the intervention, especially for those who didn't switch parties. The results highlight the importance of considering political economy consequences of such interventions, even in countries not heavily reliant on foreign assistance, to better understand their overall welfare effects.

Journal of Public Economics

Political economy of third party interventions

We analyse the impact of work-life balance policies enacted by the government of Japan on the share of time allocated by Japanese women to paid employment, home production and leisure on a typical working day. Using panel data and employing fixed effects to control for unobserved individual heterogeneity, we find that these policies have had some success in increasing married women's share of time spent in paid employment. However, the increase in the share of time spent in paid employment is not largely compensated by cutting down the share of time spent in home production. This necessitates the need to cut down the share of time spent for leisure, implying a “double burden” of work for women. Further, work-life balance policies in married men's firms do not appear to significantly influence their time allocation between various activities on a typical working day. We find that although work-life balance policies do not appear to influence the desirability of having a child for all women, they help women with children younger than six years raise the share of time spent in paid employment by largely cutting down their time allocation to home production.

Journal of the Japanese and International Economies

The Impact of Work-Life Balance Policies on the Time Allocation and Fertility Preference of Japanese Women

There is a strong political opinion in India in favour of replacing caste based affirmative action with an economic class based one. We contribute to this debate by looking at the interaction of caste and wealth in school choice. We show that too rich and too poor parents behave in the same way irrespective of their caste identities—rich parents sending their children to private schools while poor parents choosing public schools for their children. The caste identity, we find, plays a role for the school choice decision made by the parents belonging to the economic middle class. Among the economic middle class parents, the ones from the privileged castes send their children to private schools, while the children of the parents from the disadvantaged castes are sent to public schools. The result is robust to alternative definitions of privileged and disadvantaged castes. For school quality choice, however, we find a monotonic relationship between wealth and school quality.

Review of Development Economics

Class or caste? A study on the role of caste and wealth status in school choice decision

This paper examines the effects of the number of days worked by households under India’s National Rural Employment Guarantee Act (NREGA) on expenditure patterns, food security, and individual time use. I use plausible exogenous variation in administrative bottlenecks regarding the timing of work provision as an instrument for the number of days worked. The paper finds that a greater number of days worked increases household food expenditure and especially spending on dairy, proteins, and vegetables that are likely to raise children’s nutritional status. Household food security is also found to improve. These effects seem to be because of the greater participation of women relative to men in the program. Greater adult participation in NREGA raises the time spent in school for younger girls. Importantly, women’s engagement in domestic chores as their major activity is found to fall. However, older boys are found to substitute for adults in agricultural work. Although girls are unlikely to substitute for adults in performing domestic tasks due to greater adult participation in NREGA, the increased engagement of boys in agricultural work is a plausible unintended consequence of the program.

Economic Development and Cultural Change

Consumption and Time-Use Effects of India’s Employment Guarantee and Women’s Participation

India imposed one of the strictest lockdowns in the world to contain the spread of COVID-19 pandemic. According to the Stringency Index developed by the Blavatnik School of Government at the University of Oxford, by the 25th of March, 2020, India had already reached the highest possible level of stringency (index value = 100). This involved a near-complete shutdown of all economic activity. What were the labour market implications of this shutdown? The first-order effects are evident in the massive increase in total unemployment. However, is the pandemic and its aftermath a great leveller? Are the labour implications of the lockdown gender neutral? How did the lockdown affect domestic time allocation, in particular time spent on domestic work and with friends? Were these changes gender neutral, given that the lockdown was gender blind?

Indian Journal of Labour Economics

Early Effects of Lockdown in India: Gender Gaps in Job Losses and Domestic Work

We consider a supply chain where manufacturers can be differentiated along two dimensions—product quality and cost of social responsibility effort. There are two types of manufacturers: high and low. Under complete information, high-type manufacturers exert a greater level of social responsibility effort in comparison with the low-type manufacturers. We then show that under incomplete information, high-type manufacturers have an incentive to exert an even greater level of social responsibility effort. Surprisingly, the extent of effort put in by high-type firms cannot be lower and, in some cases, can be strictly higher under incomplete information.