nep-cna New Economics Papers
on China
Issue of 2013‒04‒20
three papers chosen by
Zheng Fang
Ohio State University

  1. A META-ANALYSIS OF THE ESTIMATES OF RETURNS TO SCHOOLING IN CHINA By Elaine Liu; Shu Zhang
  2. The Costs of Worker Displacement in Urban Labor Markets of China By Y. Ge; H. Lehmann
  3. Who is Coming to the Experiment? A Cautionary Tale from China By Elaine Liu; Paul Frijters; Tao Sherry Kong

  1. By: Elaine Liu (University of Houston); Shu Zhang (University of Houston)
    Abstract: This paper performs a meta-analysis to investigate how changes over time, model specifications, differences in data sets, and variable definitions could contribute to the differences in estimates of returns to education in China. The results show that approximately 10 percent of the variation can be explained by changes in labor market over time, while the other 45 percent can be explained by differences in samples used and empirical methods. Return to education has increased approximately 0.2 percentage points a year since the economic reform, and increases more quickly as the reform progresses; however, this accelerating trend has reached a stop in the last few years when the global recession hit China. We also find that returns to education for rural-to-urban migrant workers are 2.3 percentage points lower than that of urban workers. We conclude that the increasing reward for human capital accumulation over time signals that China is moving toward a well functioning labor market.
    Keywords: Returns to Education, China, Meta-Analysis
    JEL: I20 J3 O12
    Date: 2013–04–08
    URL: http://d.repec.org/n?u=RePEc:hou:wpaper:201309855&r=cna
  2. By: Y. Ge; H. Lehmann
    Abstract: This paper analyzes the costs of job loss in China, using unique new data from the Rural-to-Urban Migration in China (RUMIC) data set for the year 2009. We investigate conventional labor market outcomes upon displacement like the length of unemployment spells, hours worked and monthly earnings. We also analyze whether displaced workers are more likely to be in informal employment relationships or selfemployed or less happy than their non-displaced counterparts. We also look at health and psychic costs as additional outcomes. Displaced migrant workers do not encounter losses in terms of longer unemployment spells or wage penalties, while urban displaced workers incur very large costs in terms of these two outcomes. These results point to segmented urban labor markets in China. All displaced workers have an increased likelihood of being informal, while only migrants among the displaced experience a lowered incidence of self-employment. Also, health costs and psychic costs can be linked to displacement although these costs are not prevalent in a uniform fashion. Stratification of the data by gender, level of development and ownership seems important as it shows substantial heterogeneity of the costs of job loss across these dimensions.
    JEL: J64 J65 P50
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:bol:bodewp:wp876&r=cna
  3. By: Elaine Liu (University of Houston); Paul Frijters (University of Queensland); Tao Sherry Kong (Peking University)
    Abstract: We compare the characteristics and regression coefficients between the participants in a field experiment in China and the survey population from which they were recruited. The experimental participants were more educated, younger, more likely to be male, more risk-loving and work fewer hours than the more general population. The estimates of their regression coefficients in the standard analyses of wages, happiness and entrepreneurship differed significantly from non-participants, indicating that inferences drawn from experimental samples may not hold for more representative groups of the population.
    Keywords: Field experiment, China
    JEL: A10
    Date: 2013–04–08
    URL: http://d.repec.org/n?u=RePEc:hou:wpaper:201309854&r=cna

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