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Impact of Temporary Migration on Long-Run Economic Development: The Legacy of the Sent-down Youth Program

Author

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  • Gorgens, Tue

    (Australian National University)

  • Meng, Xin

    (Australian National University)

  • Zhao, Guochang

    (Southwest University of Finance and Economics, Chengdu)

Abstract

Fifty years ago, China sent more than 16 million urban youths aged 16–19 to rural villages to work and they spent between 1 and 10 years there. This is known as the 'sent-down youth' (SDY) program. This paper examines how this internal migration impacted rural economic development in the regions that received a larger number of SDY per capita relative to regions that received less. We find a sizeable and persistent impact of the SDY program on real per capita GDP and nighttime light in the years after the program ended. Surprisingly, although our results confirm that the SDY increased education level of relevant cohorts, the variation in the education level of these cohorts does not seem to contribute directly to rural GDP and nighttime lights. We provide suggestive evidence regarding mechanisms through which the SDY influenced rural economic development.

Suggested Citation

  • Gorgens, Tue & Meng, Xin & Zhao, Guochang, 2024. "Impact of Temporary Migration on Long-Run Economic Development: The Legacy of the Sent-down Youth Program," IZA Discussion Papers 16951, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16951
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    More about this item

    Keywords

    economic development; migration; sent-down youth; China;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • N00 - Economic History - - General - - - General

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