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The Impact of Rustication on Sent-Down Cohorts¡¯ Income

Author

Listed:
  • Juan Yang

    (School of Economics and Business Administration, Beijing Normal University, Beijing 100875, China)

  • Shi Li

    (School of Economics and Business Administration, Beijing Normal University, Beijing 100875, China)

Abstract

We estimate the impact of rustication on sent-down cohorts during the decade period of the Cultural Revolution, relying on econometric methods and policy reviewing. The data used from the Chinese Household Income Project (CHIP) for the years 1995 and 2002 show that the average income of sent-down cohorts is higher than those who were not sent-down, which seems to conflict with the human capital theory that predicts that education increases future expected returns. This paper separates the impact of ability, family background, and policies on intellectual youth and finds that their rustication had a significant negative effect for the sent-down cohorts. Correction for sent-down cohorts¡¯ working experience from the year they went to the countryside decreases the income inequality among low-income sent-down cohorts, and compensates for the negative effects of the sent-down experience.

Suggested Citation

  • Juan Yang & Shi Li, 2011. "The Impact of Rustication on Sent-Down Cohorts¡¯ Income," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 6(2), pages 290-310, June.
    • Handle: RePEc:fec:journl:v:6:y:2011:i:2:p:290-310
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-011-0133-5
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    Citations

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    Cited by:

    1. Yi Fan, 2017. "Does Adversity Affect Long-Term Consumption and Financial Behaviour? Evidence from China's Rustication Programme," ERES eres2017_148, European Real Estate Society (ERES).
    2. Fan, Yi, 2020. "Does adversity affect long-term financial behaviour? Evidence from China’s rustication programme," Journal of Urban Economics, Elsevier, vol. 115(C).
    3. Chen, Yi & Jiang, Sheng & Zhou, Li-An, 2020. "Estimating returns to education in urban China: Evidence from a natural experiment in schooling reform," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 218-233.

    More about this item

    Keywords

    Cultural Revolution; sent-down; income distribution;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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