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

  • Yao Pan

    ()

    (Institute for International Economic Policy, George Washington University)

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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.

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File URL: http://www.gwu.edu/~iiep/assets/docs/papers/Pan_IIEPWP2012-05.pdf
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Paper provided by The George Washington University, Institute for International Economic Policy in its series Working Papers with number 2012-5.

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Length: 56 pages
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:gwi:wpaper:2012-5
Contact details of provider: Web page: http://www.gwu.edu/~iiep/
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  1. Whalley, John & Zhang, Shunming, 2007. "A numerical simulation analysis of (Hukou) labour mobility restrictions in China," Journal of Development Economics, Elsevier, vol. 83(2), pages 392-410, July.
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  8. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August.
  9. Fujita, Masahisa & Mori, Tomoya & Henderson, J. Vernon & Kanemoto, Yoshitsugu, 2004. "Spatial distribution of economic activities in Japan and China," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 65, pages 2911-2977 Elsevier.
  10. Iregui, Ana Maria, 2003. "Efficiency Gains from the Elimination of Global Restrictions on Labour Mobility: An Analysis using a Multiregional CGE Model," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  11. David Card & Alexandre Mas & Jesse Rothstein, 2007. "Tipping and the Dynamics of Segregation," NBER Working Papers 13052, National Bureau of Economic Research, Inc.
  12. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
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  17. Chun-Chung Au & Vernon Henderson, 2002. "How Migration Restrictions Limit Agglomeration and Productivity in China," NBER Working Papers 8707, National Bureau of Economic Research, Inc.
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  20. Dobkin, Carlos & Ferreira, Fernando, 2010. "Do school entry laws affect educational attainment and labor market outcomes?," Economics of Education Review, Elsevier, vol. 29(1), pages 40-54, February.
  21. Michael Fertig & Jochen Kluve, 2005. "The Effect of Age at School Entry on Educational Attainment in Germany," RWI Discussion Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  22. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
  23. Michael Clemens & Satish Chand, 2008. "Skilled Emigration and Skill Creation: A quasi-experiment," Working Papers 152, Center for Global Development.
  24. Walmsley, Terri Louise & Winters, L. Alan, 2003. "Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis," CEPR Discussion Papers 3719, C.E.P.R. Discussion Papers.
  25. Liu, Zhiqiang, 2005. "Institution and inequality: the hukou system in China," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 133-157, March.
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  27. Burton A. Weisbrod, 1962. "Education and Investment in Human Capital," Journal of Political Economy, University of Chicago Press, vol. 70, pages 106.
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