Abstract

This paper studies educational aspirations and grade achievements of teenagers in India, using Structural Equation Modelling with data from the Young Lives Study. The analysis differentiates direct effects of relevant socio-economic and individual characteristics on educational output from indirect effects through aspirations. In this sample, some student characteristics – parents’ education, mothers’ caste and the student’s gender – have no direct effect on educational output, but an indirect effect on educational aspirations going through abilities. Students from disadvantaged backgrounds, and in particular girls, are at a disadvantage at age 12 because they have accumulated lower cognitive abilities. Abilities shape aspirations, which then impact educational output beyond the mere effect of abilities. Girls are at a double disadvantage: besides lower average skills at age 12, they developed lower aspirations than boys of the same characteristics. The economic situation of the household was neither directly nor indirectly related with students’ achievements in school. These results help distinguish aspirations as drivers of behaviour from aspirations as correlates of other characteristics, and they have relevant policy implications.

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