How does globalization affect educational attainment? Evidence from China

Maggie Y. Liu

International Economics, 2023, vol. 174, issue C, 138-159

Abstract: I examine the effect of China’s integration into the world economy on high school education in Chinese prefectures between 1991 and 2005. I focus on the reduction in trade policy uncertainty faced by Chinese exporters in the U.S., and use Bartik-style local treatment measures in a difference-in-differences empirical framework. I find increases in high school education were attenuated in prefectures facing larger reductions in U.S. tariff uncertainty on unskilled-labor intensive goods — this result is driven by an increased opportunity cost of schooling due to the arrival of low-skill jobs upon the elimination of trade policy uncertainty with the U.S.

Keywords: Education; Globalization; Trade policy uncertainty; WTO (search for similar items in EconPapers)
JEL-codes: F16 F63 F66 J24 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:174:y:2023:i:c:p:138-159

DOI: 10.1016/j.inteco.2023.03.003

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