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

Mingzhe Yu and Xin Deng

Finance Research Letters, 2021, vol. 43, issue C

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.

Keywords: Human Capital; Years of Schooling; Marketization; China Time-Honored Brand (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:43:y:2021:i:c:s154461232100310x

DOI: 10.1016/j.frl.2021.102268

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