Wage Return to Education and Fertility in North East India

Education enhance values of women’s time and open window of opportunities to work outside home. Having young children who need care lower the chance of married and single mothers' participation in economically productive activities, but education significantly can flip-flop the scenario. This paper aims to test the hypothesis of employment and wage return to education and fertility in Northeast India. Data representative of Northeast India from India Human Development Survey (IHDS 2004-05) is used in the study and for econometric analysis Heckman two step models is employed. It is found that most women are educated only up to high school level. Majorities (71 percent) of the women are not working and 70 percent reported as working are self employed. Average annual income of working women in NE India is Rs. 52,577. Educational attainment and age are significant determinants of women’s wage. Mean income of women with one child are found to be higher than with two or more children. Earning of urban women who have better employment opportunities are significantly higher than their rural counterparts.