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The Inheritance of Marketization Level and Regional Human Capital Accumulation: Evidence from China

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  • Yu, Mingzhe
  • Deng, Xin

Abstract

The differences in human capital stock among regions in China have been widening since the mid-1990s, and regional marketization level is a possible determinant of human capital accumulation. Combining a nationwide survey data set at the individual level with more than 40,000 observations and an index of marketization for each province, we find a positive relation between marketization level and individuals’ years of schooling. Moreover, regional marketization levels, in the long run, using instrumental variables estimation can explain about 53% of the differences in average years of schooling among provinces. The findings suggest that a better market environment encourages human capital accumulation, which is an important condition for regional economic prosperity.

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  • Yu, Mingzhe & Deng, Xin, 2021. "The Inheritance of Marketization Level and Regional Human Capital Accumulation: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:finlet:v:43:y:2021:i:c:s154461232100310x
    DOI: 10.1016/j.frl.2021.102268
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