Migration Networks, Export Shocks, and Human Capital Acquisition: Evidence from China

54 Pages Posted: 18 Feb 2021 Last revised: 6 May 2022

See all articles by Shu Cai

Shu Cai

Jinan University

Xinzheng Shi

Tsinghua University - School of Economics & Management

Zhufeng Xu

Central University of Finance and Economics (CUFE) - School of Economics

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Date Written: May 4, 2022

Abstract

We examine the impact of export shocks proxied by destination countries’ tariffs on the postmiddle school enrollment of the rural population in China. We complement the literature by examining across-region spillover effects of export shocks through initial migration networks. We find that the reduction of export tariffs at both the local and migration-destination prefectures significantly decreases postmiddle school enrollment of the 16-18 years old cohort, but the latter is stronger. Further analysis suggests that employment in secondary industry rise significantly with the reduction of export tariffs, which improves job opportunities and thus increases the postmiddle school dropout rate.

Keywords: Tariff shocks, Educational choice, High school enrollment, Migration networks

JEL Classification: F16, J24, O12, O14

Suggested Citation

Cai, Shu and Shi, Xinzheng and Xu, Zhufeng, Migration Networks, Export Shocks, and Human Capital Acquisition: Evidence from China (May 4, 2022). Available at SSRN: https://ssrn.com/abstract=3768859 or http://dx.doi.org/10.2139/ssrn.3768859

Shu Cai

Jinan University ( email )

601 W. Huangpu Ave., Tianhe District
Guangzhou, Guangdong 510632
China

Xinzheng Shi (Contact Author)

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Zhufeng Xu

Central University of Finance and Economics (CUFE) - School of Economics ( email )

Beijing
China

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