This study investigates how poor households in rural and urban Rajasthan form beliefs about the value of additional years of schooling. Previous studies have documented that poor populations in developing nations hold downwardly biased beliefs of the returns to schooling; they do not think schooling is as valuable as it actually is. Further, it has been shown that providing correct beliefs about average wages for adults with high levels of schooling can significantly and substantially increase schooling attainment. This project aims to understand how such interventions can be made more effective by understanding the source of the original bias.
Berry, J.; Coffman, L. Belief Formation in the Returns to Schooling (IGC Working Paper). International Growth Centre (IGC), London, UK (2012) 13 pp.