| Abstract | : This paper explores the relationship between household literacy and the  labour market outcomes of illiterate household members which Basu, Narayan  and Ravallion, 2002, (BNR) report using Household Income and Expenditure data  from Bangladesh. BNR attribute a considerable wage premium for proximateilliterate women in off-farm employment to labour productivity gains from intrahousehold literacy sharing. The wage premium also suggests that women may be  more efficient recipients of literacy externalities than men. We propose that any  such relationship might not be due to higher labour productivity but have other  explanations such as systematically different and unobserved attributes of illiterate  females married into literate households. We also pay attention to the negative  selection of illiterate females into non-farm wage employment which contrary to  received wisdom suggests that household literacy may not be unambiguously  progressive for females. We also propose that the widely reported finding that  female literacy impacts more positively than male literacy on child well-being  may not extend into similar effects in other realms of household activities where  males may be more efficient transmitters of literacy externalities. Using more  recent Bangladesh and Indian data we find somewhat different results for  household literacy externalities on non-farm wage employment of household  illiterates, and also show that any such effects are conditioned on the social  identity of the individuals, and their geographic location as well as their sector of  employment. We caution against drawing conclusions from one finding using one  data set apparently ignoring contrary results, where that finding is congruent with  fashionable development views,such as the advantages of females as generators  of development. |