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The Effect of Labor Mobility Restrictions on Human Capital Accumulation in China

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  • Yao Pan

    (Institute for International Economic Policy, George Washington University)

Abstract

The Hukou system restricts rural-urban migration in China. This paper proposes positive impact of the Hukou system on education: rural people have stronger incentives to pursue higher education, treating it as a means to obtain urban identity and escape from under-developed areas. Applying the weighted sharp estimator developed in this study for regression discontinuity design, I find the human capital decreased sharply, when the mobility restriction was removed. These results reveal the important role of the Hukou system on encouraging educational investment in the presence of education-based selective migration in China.

Suggested Citation

  • Yao Pan, 2012. "The Effect of Labor Mobility Restrictions on Human Capital Accumulation in China," Working Papers 2012-5, The George Washington University, Institute for International Economic Policy.
    • Handle: RePEc:gwi:wpaper:2012-5
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    Cited by:

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    2. Dang Hai-Anh H. & Huang Yang & Selod Harris, 2020. "Children Left Behind in China: The Role of School Fees," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-29, January.
    3. Pan, Yao & Liu, Yishen, 2021. "Birth control, family size and educational stratification: Evidence from the Han and ethnic minorities in China," Economics of Education Review, Elsevier, vol. 81(C).
    4. Yue Sun & Liqiu Zhao & Zhong Zhao, 2024. "Hukou Status and Children’s Education in China," Working Papers 2024-004, Human Capital and Economic Opportunity Working Group.
    5. Chand, Satish & Clemens, Michael A., 2023. "Human capital investment under exit options: Evidence from a natural quasi-experiment," Journal of Development Economics, Elsevier, vol. 163(C).
    6. Sun, Yue & Zhao, Liqiu & Zhao, Zhong, 2024. "Hukou status and children's education in China," GLO Discussion Paper Series 1386, Global Labor Organization (GLO).
    7. Bocquier, Philippe & Cha’Ngom, Narcisse & Docquier, Frédéric & Machado, Joël, 2023. "The Within-Country Distribution of Brain Drain and Brain Gain Effects: A Case Study on Senegal," IZA Discussion Papers 16497, Institute of Labor Economics (IZA).
    8. de Brauw, Alan, 2018. "Rural-urban migration and implications for rural production," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(3), March.
    9. Dong, Xiaoqi & Liang, Yinhe & Zhang, Jiawei, 2023. "Fertility responses to the relaxation of migration restrictions: Evidence from the Hukou reform in China," China Economic Review, Elsevier, vol. 81(C).
    10. Xu, Huayu, 2021. "The long-term health and economic consequences of improved property rights," Journal of Public Economics, Elsevier, vol. 201(C).
    11. Narcisse Cha'Ngom & Christoph Deuster & Frédéric Docquier & Joël Machado, 2023. "Selective Migration and Economic Development: A Generalized Approach," LISER Working Paper Series 2023-06, Luxembourg Institute of Socio-Economic Research (LISER).
    12. Chuhong Wang & Xingfei Liu & Zizhong Yan, 2021. "Temporary versus permanent migration: The impact on expenditure patterns of households left behind," Review of Economics of the Household, Springer, vol. 19(3), pages 873-911, September.
    13. John Giles & Yang Huang, 2020. "Migration and human capital accumulation in China," IZA World of Labor, Institute of Labor Economics (IZA), pages 476-476, May.
    14. Ding, Xiaozhou, 2021. "College education and internal migration in China," China Economic Review, Elsevier, vol. 69(C).
    15. Jie Ji & Xiaoyue Sun & Zhiwen Zhang & Yingyan Cai, 2023. "Socioeconomic Status and Child Quality of Life: The Mediating Roles of Parenting Practices," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(3), pages 1073-1095, June.

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    More about this item

    Keywords

    migration restriction; human capital accumulation; regression discontinuity; China;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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