Road infrastructure and skill premium: Evidence from Indian manufacturing

• 成果类型: Article
• 署名作者: Chatterjee, Santanu; Lebesmuehlbacher, Thomas; Narayanan, Abhinav
• 署名单位: University System of Georgia; University of Georgia; University System of Ohio; Xavier University; Reserve Bank of India
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2024.103408
• 发表日期: 2025
• 关键词: infrastructure; roads; public investment; Golden Quadrilateral; Manufacturing; Skill premium; monopsony; capital-skill complementarity; Skill mismatch

摘要

We investigate the impact of road infrastructure on labor markets in India's manufacturing sector by using the variation in time spent by firms and households on completed sections of a major highway construction project. While the skill composition and overall employment remain unchanged, we find that the skill premium rises three years after the completion of a highway segment, primarily in larger firms that use transportation assets intensively. Labor market frictions significantly influence these outcomes: districts with higher skill mismatch or lower firm monopsony power see amore substantial increase in the skill premium after the completion of a highway segment.