What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data
We analyze the factors that determine human capital formation in the rural and urban sectors of Nepal and decompose the intersectoral difference into variables underlying supply and demand for human capital. In particular, we examine the role of access to primary and secondary schools as well as the...
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doaj-d3ce042618cc419b934a5bb01b0151ba2021-06-01T01:05:36ZengMDPI AGEconomies2227-70992021-05-019838310.3390/economies9020083What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey DataSatis Devkota0Shankar Ghimire1Mukti Upadhyay2Social Science Division, University of Minnesota Morris, Morris, MN 56267, USASchool of Accounting, Finance, Economics, and Decision Sciences, Western Illinois University, Macomb, IL 61455, USADepartment of Economics, Eastern Illinois University, Charleston, IL 61920, USAWe analyze the factors that determine human capital formation in the rural and urban sectors of Nepal and decompose the intersectoral difference into variables underlying supply and demand for human capital. In particular, we examine the role of access to primary and secondary schools as well as the socioeconomic, demographic, and geographic characteristics of households. Our results are based on Nepal Living Standards Survey data for 2004 and 2011. We find that access to schooling has a significant impact on the level of human capital, especially in rural areas. Our Blinder–Oaxaca decomposition attributes a large portion of the rural–urban gap to socioeconomic and demographic variables. Yet, the results reinforce our claim that an improvement in schooling access and road infrastructure is also necessary, particularly in the vast rural sector of Nepal, if human capital development is to provide a greater contribution to national welfare.https://www.mdpi.com/2227-7099/9/2/83human capital indexrural–urban differenceBlinder–Oaxaca decompositionNepal Living Standards Surveys |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Satis Devkota Shankar Ghimire Mukti Upadhyay |
spellingShingle |
Satis Devkota Shankar Ghimire Mukti Upadhyay What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data Economies human capital index rural–urban difference Blinder–Oaxaca decomposition Nepal Living Standards Surveys |
author_facet |
Satis Devkota Shankar Ghimire Mukti Upadhyay |
author_sort |
Satis Devkota |
title |
What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data |
title_short |
What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data |
title_full |
What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data |
title_fullStr |
What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data |
title_full_unstemmed |
What Factors in Nepal Account for the Rural–Urban Discrepancy in Human Capital? Evidence from Household Survey Data |
title_sort |
what factors in nepal account for the rural–urban discrepancy in human capital? evidence from household survey data |
publisher |
MDPI AG |
series |
Economies |
issn |
2227-7099 |
publishDate |
2021-05-01 |
description |
We analyze the factors that determine human capital formation in the rural and urban sectors of Nepal and decompose the intersectoral difference into variables underlying supply and demand for human capital. In particular, we examine the role of access to primary and secondary schools as well as the socioeconomic, demographic, and geographic characteristics of households. Our results are based on Nepal Living Standards Survey data for 2004 and 2011. We find that access to schooling has a significant impact on the level of human capital, especially in rural areas. Our Blinder–Oaxaca decomposition attributes a large portion of the rural–urban gap to socioeconomic and demographic variables. Yet, the results reinforce our claim that an improvement in schooling access and road infrastructure is also necessary, particularly in the vast rural sector of Nepal, if human capital development is to provide a greater contribution to national welfare. |
topic |
human capital index rural–urban difference Blinder–Oaxaca decomposition Nepal Living Standards Surveys |
url |
https://www.mdpi.com/2227-7099/9/2/83 |
work_keys_str_mv |
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