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Human Capital, Economic Growth, and Inequality in China

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  • James J. Heckman
  • Junjian Yi

Abstract

China's rapid growth was fueled by substantial physical capital investments applied to a large stock of medium skilled labor acquired before economic reforms began. As development proceeded, the demand for high skilled labor has grown, and, in the past decade, China has made substantial investments in producing it. The egalitarian access to medium skilled education characteristic of the pre-reform era has given rise to substantial inequality in access to higher levels of education. China's growth will be fostered by expanding access to all levels of education, reducing impediments to labor mobility, and expanding the private sector.

Suggested Citation

  • James J. Heckman & Junjian Yi, 2012. "Human Capital, Economic Growth, and Inequality in China," NBER Working Papers 18100, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:18100
    Note: CH ED LS
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    References listed on IDEAS

    as
    1. Zimmermann, Klaus F. & Constant, Amelie & Tien, Bienvenue & Meng, Jingzhou, 2011. "China's Latent Human Capital Investment: Achieving Milestones and Competing for the Top," CEPR Discussion Papers 8376, C.E.P.R. Discussion Papers.
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    6. Fleisher, Belton M. & Wang, Xiaojun, 2004. "Skill differentials, return to schooling, and market segmentation in a transition economy: the case of Mainland China," Journal of Development Economics, Elsevier, vol. 73(1), pages 315-328, February.
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    More about this item

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • 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

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