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Human capital estimates in China: New panel data 1985–2010

Author

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  • Li, Haizheng
  • Liu, Qinyi
  • Li, Bo
  • Fraumeni, Barbara
  • Zhang, Xiaobei

Abstract

We introduce new provincial level panel data on human capital in China from 1985 to 2010. Our estimation of human capital is based on the Jorgenson–Fraumeni lifetime income approach modified to fit the Chinese data, thereby allowing a more comprehensive measurement of human capital than traditional partial measurements, such as education. Our provincial data are adjusted for purchasing power parity via a living-cost index as well as for real values so that all values are comparable across the provinces and time. We discuss various characteristics of the data, including total human capital, per capita human capital, and labor force human capital, which in turn are disaggregated based on gender and urban or rural location. Our human capital estimates are compared with the provincial physical capital estimates and provincial GDP. As an illustration, we also use the data to estimate a production function and to decompose China's economic growth from physical capital, human capital, and TFP. Our results, compared with those that use traditional specifications, reassure us as to the reliability of our new China human capital data.

Suggested Citation

  • Li, Haizheng & Liu, Qinyi & Li, Bo & Fraumeni, Barbara & Zhang, Xiaobei, 2014. "Human capital estimates in China: New panel data 1985–2010," China Economic Review, Elsevier, vol. 30(C), pages 397-418.
    • Handle: RePEc:eee:chieco:v:30:y:2014:i:c:p:397-418
    DOI: 10.1016/j.chieco.2014.07.006
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    Cited by:

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    2. Fraumeni, Barbara M. & He, Junzi & Li, Haizheng & Liu, Qinyi, 2019. "Regional distribution and dynamics of human capital in China 1985–2014," Journal of Comparative Economics, Elsevier, vol. 47(4), pages 853-866.
    3. Zhang, Xiaobei & Wang, Xiaojun, 2021. "Measures of human capital and the mechanics of economic growth," China Economic Review, Elsevier, vol. 68(C).
    4. Payab, Ahmad Haseeb & Kautish, Pradeep & Sharma, Rajesh & Siddiqui, Aaliyah & Mehta, Atul & Siddiqui, Mujahid, 2023. "Does human capital complement sustainable development goals? Evidence from leading carbon emitter countries," Utilities Policy, Elsevier, vol. 81(C).
    5. Barbara M. Fraumeni, 2015. "Choosing a Human Capital Measure: Educational Attainment Gaps and Rankings," NBER Working Papers 21283, National Bureau of Economic Research, Inc.
    6. Hao Yin & Linyu Xu & Yanpeng Cai, 2015. "Monetary Valuation of PM 10 -Related Health Risks in Beijing China: The Necessity for PM 10 Pollution Indemnity," IJERPH, MDPI, vol. 12(8), pages 1-21, August.
    7. Barbara M. Fraumeni & Michael S. Christian & Jon D. Samuels, 2015. "The Accumulation of Human and Nonhuman Capital, Revisited," NBER Working Papers 21284, National Bureau of Economic Research, Inc.
    8. Borsi, Mihály Tamás & Valerio Mendoza, Octasiano Miguel & Comim, Flavio, 2022. "Measuring the provincial supply of higher education institutions in China," China Economic Review, Elsevier, vol. 71(C).
    9. Zhenshan Yang, 2019. "Threshold Effect of Poverty Alleviation Funds on Human Capital Accumulation: A Case Study of Impoverished Counties in China," Sustainability, MDPI, vol. 11(3), pages 1-12, February.
    10. Zhenshan Yang, 2023. "Human capital space: a spatial perspective of the dynamics of people and economic relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    11. Salim, Ruhul & Yao, Yao & Chen, George S., 2017. "Does human capital matter for energy consumption in China?," Energy Economics, Elsevier, vol. 67(C), pages 49-59.
    12. Li, Qing & Wu, Yanrui, 2018. "Intangible capital in Chinese regional economies: Measurement and analysis," China Economic Review, Elsevier, vol. 51(C), pages 323-341.
    13. Ye, Longfeng & Robertson, Peter E., 2019. "Hitting the Great Wall: Structural change and China's growth slowdown," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    14. Haizheng Li & Junzi He & Qinyi Liu & Barbara M. Fraumeni & Xiang Zheng, 2016. "Regional Distribution and Dynamics of Human Capital in China 1985-2014: Education, Urbanization, and Aging of the Population," NBER Working Papers 22906, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Human capital; Jorgenson–Fraumeni (J–F) lifetime income approach; China;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • I00 - Health, Education, and Welfare - - General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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