Cohort crowding in education and employment: Evidence from China's compulsory education law

Shengmin Sun, Jiawei Chen and Jiaying Chen

Journal of Economic Behavior & Organization, 2023, vol. 210, issue C, 391-411

Abstract: This study investigates the effect of cohort crowding on educational attainment and labor market performance by employing discontinuities in schooling cohort size induced by China's Compulsory Education Law. Similar to other developing countries, basic education in China was severely under-funded when the educational reforms were initiated in the 1980s. We find a negative crowding effect on completed years of schooling. Heterogeneity analysis suggests that the crowding effect is more substantial in provinces with poor endowment and in rural areas. We also find suggestive evidence of a larger cohort size on employment rate among poorly-educated people.

Keywords: Cohort crowding; Educational attainment; Schooling quality; China's compulsory education law (search for similar items in EconPapers)
JEL-codes: I20 I28 J21 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:210:y:2023:i:c:p:391-411

DOI: 10.1016/j.jebo.2023.04.026

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