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Cohort crowding in education and employment: Evidence from China's compulsory education law

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  • Sun, Shengmin
  • Chen, Jiawei
  • Chen, Jiaying

Abstract

This study investigates the effect of cohort crowding on educational attainment and labor market performance by employing discontinuities in schooling cohort size induced by China's Compulsory Education Law. Similar to other developing countries, basic education in China was severely under-funded when the educational reforms were initiated in the 1980s. We find a negative crowding effect on completed years of schooling. Heterogeneity analysis suggests that the crowding effect is more substantial in provinces with poor endowment and in rural areas. We also find suggestive evidence of a larger cohort size on employment rate among poorly-educated people.

Suggested Citation

  • Sun, Shengmin & Chen, Jiawei & Chen, Jiaying, 2023. "Cohort crowding in education and employment: Evidence from China's compulsory education law," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 391-411.
    • Handle: RePEc:eee:jeborg:v:210:y:2023:i:c:p:391-411
    DOI: 10.1016/j.jebo.2023.04.026
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    More about this item

    Keywords

    Cohort crowding; Educational attainment; Schooling quality; China's compulsory education law;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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