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Educational Responses to Migration-Augmented Export Shocks: Evidence from China

Author

Listed:
  • Yao Pan

    (George Washington University)

  • Jessica Leight

    (International Food Policy Research Institute)

Abstract

This paper analyzes the effects of positive shocks to export-oriented industries following China's accession to the World Trade Organization on human capital investment in urban and rural areas. Exploiting cross-county variations in the reduction in export tariff uncertainty both locally and at plausible migration destinations, we find that youth reaching matriculation age post-accession in counties experiencing a larger export shock show a lower probability of enrolling in high school. In urban areas, this effect is driven by local shocks, while in rural areas, it is primarily driven by shocks at migration destinations. Urban youth show evidence of a deterioration in labor market outcomes linked to declining matriculation rates, while there is no evidence of significant labor market effects for rural youth.

Suggested Citation

  • Yao Pan & Jessica Leight, 2021. "Educational Responses to Migration-Augmented Export Shocks: Evidence from China," Working Papers 2021-14, The George Washington University, Institute for International Economic Policy.
    • Handle: RePEc:gwi:wpaper:2021-14
    as

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    File URL: https://www2.gwu.edu/~iiep/assets/docs/papers/2021WP/PanIIEP2021-14.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Export Shock; Human Capital Attainment; Urban-rural Inequality; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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