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

Yao Pan ()

Working Papers from The George Washington University, Institute for International Economic Policy

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.

Keywords: migration restriction; human capital accumulation; regression discontinuity; China (search for similar items in EconPapers)
JEL-codes: J24 J61 O15 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2012-04
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Citations: View citations in EconPapers (1)

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http://www.gwu.edu/~iiep/assets/docs/papers/Pan_IIEPWP2012-05.pdf (application/pdf)

Related works:
Journal Article: The Impact of Removing Selective Migration Restrictions on Education: Evidence from China (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2012-5

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