Political connections and higher education

Maiting Zhuang
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Maiting Zhuang: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: Do political connections affect investment in human capital? This paper studies the higher education decisions of politically connected and unconnected students during China's economic transition. Using the sequential introduction of reforms, I show that economic liberalization increased tertiary educational attainment, as well as sorting of students into different degree types depending on family background. Students whose parents were members of the Chinese Communist Party selected into relatively less prestigious vocational colleges with lower admissions standards. In contrast, politically unconnected individuals responded to the higher skill premium following the reforms by studying harder to obtain more demanding and sought‐after university degrees.

Date: 2019
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Published in Economics of Transition and Institutional Change, 2019, 27 (1), pp.67-97. ⟨10.1111/ecot.12157⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02492531

DOI: 10.1111/ecot.12157

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