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on China |
| By: | Deng, Zichen (University of Amsterdam); Luo, Weixiang (Fudan University, China); Plug, Erik (University of Amsterdam); Yu, Jia (Peking University) |
| Abstract: | We document, for the very first time, the relationship between earnings and sexual orientation in China. Using data from the 2020 Chinese Private Life Survey, we find that gay men earn significantly less than comparable heterosexual men, with the largest penalties for rural-hukou holders and among men reporting exclusive same-sex attraction. Lesbian women tend to earn more than heterosexual women, but the differences are small and mostly insignificant. The estimates for bisexual men and women are uniformly insignificant. We conclude that the gay penalties and lesbian premiums in China, albeit imprecisely estimated, mirror those observed in Western labor markets and are most consistent with explanations based on conventional gender norms and intra-household specialization. |
| Keywords: | earnings, sexual orientation, China |
| JEL: | D10 J10 J15 J30 J70 O10 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18317 |
| By: | Hu, Yan (Department of Economics, Copenhagen Business School); Maurer, Stephan (University of Edinburgh,) |
| Abstract: | Do minorities benefit from social networks? In this paper, we study this ques-tion using the historical example of China’s first modern bureaucratic organization, the Chinese Maritime Customs Service. Drawing on newly digitized personnel records from 1876-1911, we first show that the Chinese clerks employed by the service were predomi-nantly Cantonese. Using the plausibly exogenous transfers of clerks across stations, we then estimate that a non-Cantonese (minority) clerk benefited significantly from meeting at least one colleague from his same province and dialect. Such connections led to faster promotion and a 5.6% salary increase, with even stronger effects when meeting a clerk who was either senior or of high quality. |
| Keywords: | Chinese Maritime Customs Service; Social connections; Wages; Promotion; Minorities |
| JEL: | J15 J31 J45 N35 N75 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_014 |
| By: | Jiarui Nan (School of Economics, University of Sheffield, Sheffield S10 2TU, UK); Gurleen Popli (School of Economics, University of Sheffield, Sheffield S10 2TU, UK) |
| Abstract: | This paper examines the determinants of the urban-rural wage gap in China within the framework of segmented labour markets. Using nationally representative data from the China Family Panel Studies (2014–2022), we employ Oaxaca–Blinder decomposition at the mean, and Recentered Influence Function (RIF) regression across the wage distribution. A key contribution of this study is the use of alternative definitions of urban and rural status, based on hukou registration and geographic residence, allowing us to capture both institutional and spatial dimensions of inequality. The results show that mean wage disparities are largely explained by compositional differences, particularly in education and access to formal contracts, reflecting segmentation between distinct rural and urban labour markets. Yet rural workers also experience significant lower returns to education. Quantile decompositions reveal that the wage gap widens at higher percentiles, where unobserved or institutional disadvantages become more pronounced, for both men and women. Overall, the findings demonstrate that China’s urban-rural wage inequality reflects both unequal endowments and structural segmentation. The definition of “urban” and “rural” critically shapes interpretation and policy implications. |
| Keywords: | return to education, China, wage gap, regional differences, decomposition, recentered influence function, segmented labour markets |
| JEL: | J42 J24 R23 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:shf:wpaper:2025015 |
| By: | Zhong, Zhen; Zhong, Xiaoting; Chen, Wei; Guo, Jun; Gu, Yangyang |
| Abstract: | China’s traditional self-sufficient economy has maintained a close relationship between agricultural production and rural livelihoods for thousands of years, with human waste playing a crucial role in closing the nutrient cycle. However, the recent toilet revolution program in rural China, spurred by significant government investments in sanitation infrastructure, presents a potential disruption to this age-old nutrient cycle. Leveraging an extensive panel dataset from China’s official Fixed Observation Rural Survey (FORS) spanning 2009 to 2018 focusing on 21, 747 farming households, we estimate the impact of adopting indoor sanitary toilets on household decisions regarding manure and chemical fertilizer usages using a two-way fixed effects (TWFE) approach. We further utilize the toilet revolution policy implementation at the village level as the instrumental variable for individual having toilets. We find that the introduction of indoor sanitation facilities leads to a notable decrease in both the probability of manure application and the amount of manure used by households, while concurrently increasing the chemical fertilizer usage and in particular the urea usage. Our study underscores the intricate interplay between advancements in rural sanitation, agricultural production decision-making, and the unintended environmental consequences arising from improved living standards in developing countries. |
| Keywords: | Production Economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360737 |
| By: | Li, Xinrong; Xuan, Zhichong; Zhao, Qiran; Yang, Boqiong; Wei, Hanlin |
| Abstract: | Household refrigerators are rapidly diffusing through low- and middle-income countries, yet their implications for the nutrition transition remain unclear. Using panel data from China’s Fixed Observation Rural Survey (2003–2018), our study performs fixed-effects models and the instrumental variables approach to explores how the household refrigerator ownership effects nutrition transition in rural China. The results show that ownership is associated with lower daily cereal intake and higher consumption of fruits, vegetables, eggs, aquatic products, and meat (all p < 0.01), indicating a shift towards nutrient-dense foods. However, total dietary fat also increases and the household Healthy Eating Index does not improve, suggesting an incomplete move toward balanced diets. Findings suggest that promoting modern storage devices like household refrigerators alone is not enough to raise the population’s overall nutritional status. Strengthening healthy eating education is also needed to help individuals plan balanced meals and avoid excessive intake of high-fat foods. The findings offer empirical support and policy insights from China, providing guidance for developing countries seeking to alleviate the triple burden of malnutrition. |
| Keywords: | Food Security and Poverty |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360885 |
| By: | Liu, Min; Huang, Kaixing; Wang, Jizhe; Wuepper, David |
| Abstract: | Ecosystem restoration is often perceived as competing with agricultural production, yet this perception neglects potential synergies emerging from biophysical feedbacks. Here, we demonstrate that large-scale grassland restoration under China’s Grassland Ecological Compensation Policy (GECP) significantly enhances maize yields by regulating local microclimate. Using a staggered difference-in-differences design with county-level panel data, we show that restored grasslands reduced average growing-season temperatures by approximately 0.11℃ and increased precipitation by 11.48mm, thereby suppressing extreme heat and drought during critical reproductive stages. These changes extended the maize reproductive growth period by 0.93 days, elevating yields by 7.76% (0.437t/ha) and reducing crop failure risk by 25.9%. Economically, the yield gains alone offset over 80% of program costs within five years, and the additional production could alleviate nearly 10% of China's maize import deficit in the Northern Spring Maize Region. Our findings overturn the conventional trade-off narrative between conservation and agri culture, positioning ecosystem restoration as a scalable strategy for climate resilient food security. |
| Keywords: | ecosystem restoration, agricultural production, climate change adaptation, grassland, China, cost-benefit analysis |
| JEL: | Q15 Q18 Q54 Q57 |
| Date: | 2025–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127058 |
| By: | Zhou, Qi; Yang, Lin; Chen, Luoye |
| Abstract: | As urbanization increasingly threatens food security, the preservation of arable land has become critical, prompting government interventions in land use to ensure food security. However, the effectiveness of these mandatory land-use strategies is often questioned due to the socio-economic complexities. This study utilizes China’s ALR policy as a natural experiment to assess the impact of arable land protection on food production. Employing satellite data and Difference-in-Differences with a continuous treatment model, the research examines agricultural outcomes in counties with different cropland restoration requirements before and after the implementation of the ALR policy. The findings suggest that the ALR policy likely reduces crop productivity. Although the sown area remains stable, there is a notable decrease in total grain output. Additionally, the study observes regional disparities. In Northeast China, the ALR policy has led to a notable decline in productivity with an increase in cropland restoration, resulting from substantially increased sown area without affecting grain production levels. This decline is likely due to the conversion of higher-quality farmland into lower-quality land. Conversely, in South China, the policy does not significantly affect crop productivity but results in a notable reduction in both the sown area and grain output. These effects are likely driven by labor shortages, which may lead to farmland abandonment despite restoration efforts. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360634 |
| By: | Wrobel, Ralph |
| Abstract: | Rare earth elements (REEs) are critical for Europe's economic competitiveness, green transition, and national security. Yet the EU remains heavily dependent on China for their supply, particularly in refining and processing. This paper examines Europe's vulnerability to supply disruptions and geopolitical leverage stemming from China's market dominance. Rising demand for REEs in renewable energy, electric vehicles, and defence technologies exacerbates this dependence, while environmental and regulatory constraints hinder European extraction and processing. Case studies, including the 2010 Senkaku crisis and 2024-25 Chinese export restrictions, illustrate how REEs can be used as strategic tools of coercion. The paper evaluates Europe's policy responses, highlighting the Critical Raw Materials Act (CRMA), domestic processing projects, recycling initiatives, and international partnerships aimed at supply diversification. While progress is evident, challenges remain: recycling is nascent, domestic capacity is limited, and EU research programs are bureaucratic and slow. Overall, Europe faces a "geopolitical trap, " requiring urgent action to secure REE supply and technological resilience. |
| Keywords: | Rare earth elements (REEs), China, Europe, geopolitics, supply chain security, strategic autonomy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:opodis:333912 |
| By: | Zhang, Zhi Min; Yu, Chengzheng; Deng, Yang |
| Abstract: | The low-carbon city pilot policy (LCCP) is an important measure for China toad-dress climate change and promote low-carbon transformation under the goals of carbon peaking and carbon neutrality. Based on the LCCP, this study uses the difference-in-differences method to explore the impact of the policy on the real carbon emissions, the carbon emissions transferred by enterprises along the industrial chain to down-stream enterprises (i.e., carbon out sourcing), and green invention and innovation of enterprises by quantifying the changes of enterprises’ comprehensive carbon emissions, carbon outsourcing, and green patent applications before and after the implementation of the low-carbon pilot policy. The results show that the pilot policy significantly inhibits the real carbon emissions (1.85%) and carbon outsourcing (44.46%) of enterprises and significantly enhance green invention and innovation of enterprises. The effect of the pilot policy on carbon emissions and the incentive effect on green invention and innovation both exhibit significant heterogeneity between heavily polluting and non-heavily polluting industries, as well as between the eastern and western regions. This paper provides a quantitative basis for the government to formulate incentive policies to strengthen green innovation, and regulate carbon emission. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360768 |
| By: | Liu, Dan; Liu, Yaru; Jin, Yanhong; Deng, Haiyan |
| Abstract: | This paper examines how the private sector in a middle-income country like China adapts to extreme heat through seed breeding innovation. While most existing research has focused on abiotic stress, such as drought and heat, we extend the analytical framework to include biotic stresses, specifically crop pest and disease exposure, a critical but often overlooked dimension of climate adaptation. We construct novel firm-level, crop-specific exposure measures of extreme heat and crop pests/diseases to investigate how both climate-related abiotic and biotic stressors influence the development of heat/drought-tolerant (HDT) and pest/disease-resistant (PDR) varieties at the firm level. Our results show that Chinese seed firms actively respond to climate pressures, increasing HDT varieties by 2.6% and PDR varieties by 9% for an additional harmful extreme heat degree-day, with significant variations across crops. Maize exhibits comprehensive adaptation across both HDT and PDR, rice focuses on PDR traits, while wheat shows limited responsiveness due to biological complexity and weaker market incentives. Breeding innovation responsiveness is stronger among private firms compared to state-owned enterprises and is most pronounced under the independent innovation model relative to inter-firm collaboration and private-public partnership models. We identify three key pathways driving these responses: increased farmer demand for climate-resilient seeds, heightened pest and disease pressures induced by extreme heat, and government policy signals, proxied by official communications addressing climate- and pest/disease-related issues. Furthermore, the adoption of improved varieties significantly mitigates crop yield loss caused by extreme heat exposure and pest/disease prevalence--PDR varieties reduce pest-related yield losses by 363.72 tons in rice and by 1, 342.27 tons in maize. However, adoption and mitigation effects in wheat remain limited due to biological and market constraints. These findings offer valuable policy insights for enhancing agricultural climate resilience. |
| Keywords: | Productivity Analysis, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361183 |
| By: | Xuan, Zhichong; Li, Xinrong; Yang, Boqiong; Zhao, Qiran |
| Abstract: | In response to the global push for low‐carbon development and the persistent tension between economic growth and ecological goals in developing countries, China launched the Low-Carbon City Pilot (LCCP) policy in 2010 to explore potential synergies between environmental regulation and economic performance. This study treats the LCCP policy as a quasi‐natural experiment to evaluate its average treatment effect on foreign direct investment (FDI) and to analyze its spatial spillover effects and underlying mechanisms. Using panel data for 282 prefecture‐level cities from 2005 to 2021, we employ staggered difference‐in‐differences and spatial difference‐in‐differences methods. Our findings indicate that the LCCP policy significantly deters FDI in pilot cities, lending support to the pollution haven hypothesis. A mechanism analysis identifies four pathways: induced green technological innovation, strengthened environmental governance, an optimized foreign investment structure, and public behavior-driven. Notably, the LCCP policy generates positive spillovers by stimulating FDI in adjacent cities. Heterogeneity analysis reveals that the negative impacts are more pronounced in growing and mature resource‐based cities, as well as in the eastern and central regions of China. These results suggest that, while environmental regulations may discourage FDI in the short run, they can effectively foster spatial cooperation and industry restructuring that promote sustainable development. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360767 |
| By: | Tian, Xiaohui; Tang, Yifang; Guo, Yifeng; Liu, Pengfei |
| Abstract: | As solar photovoltaic (PV) infrastructure expands rapidly across rural China, its economic implications for local communities have attracted increasing attention. This study provides a high-resolution, micro-level analysis of the impact of PV deployment on rural household income and energy use. We link nationally representative household panel data with satellite imaging data on PV sites between 2010 and 2022 to construct a time-varying measure of PV density within a 1–10 km radius of 381 villages. Using two-way fixed effects and a continuous-treatment difference-in-differences design, we find that PV deployment within a 3–5 km radius significantly increases household disposable income by approximately 8% and raises essential fuel expenditure by about 11%. These effects attenuate with distance from the PV sites. Heterogeneity analysis shows that the fuel expenditure effect is more pronounced among poor households, those located in heating regions, and households using clean or electric heating equipment. We find no significant differences in impact by income level, administrative poverty status, or agricultural income dependence, which provide important insights into the distributive consequences of rural energy transitions. The findings offer empirical evidence to support the design of equitable, spatially targeted PV development policies in developing regions. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361211 |
| By: | Shi, Xinjie; Huangfu, Bingyu; Zhang, Yan; Hu, Peinan; Gao, Xuwen |
| Abstract: | This paper investigates the effects of grassland certification reform on grassland quality and livestock output in China. Using remote sensing and household surveyed data, we found that the Normalized Difference Vegetation Index (NDVI) of our research area decreased by 9.37% after the implementation of the certification reform. Two potential mechanisms can be responsible for the tragic ecological consequences. The initial factor is the intensified grassland fragmentation. Contiguous large-scale grasslands were divided into small-scale fragmented grasslands after the certification reform, resulting in increased grazing intensity. The imperfection of grassland use rights could be the second potential mechanism. Herders have transferred their grazing intensity from their personally owned grazing area to the leased grazing field due to the volatility of grassland tenure and the inadequacy of agreements. Conversely, the aggregate output of villages increased by 15.5%, and the grassland rental markets became more efficient. We contend that property rights reforms have increased the vulnerability of grassland ecology and the livelihoods of herders despite the anticipated enhancement in output resulting from the reforms. These findings suggest that the trade-off between grassland sustainability and livestock productivity capacity led by the grassland property rights reform has impeded the development of more comprehensive strategies to withstand grassland degradation. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361156 |
| By: | Giorgio Chiovelli; Francesco Amodio; Serafín Frache |
| Abstract: | We show that commodity export booms can propagate up the value chain, reshape production networks, and promote growth in the service sector. We study Uruguay’s beef export boom to China in the 2010s, combining customs, firm-to-firm transactions, employer-employee, and balance sheet data. Firms more linked to exporters experienced higher sales, especially in services, with associated gains in employment, wages, and sales per worker. Aggregate sales rose by 1.79%, with each export dollar generating 46 more cents in domestic sales, 10 cents in services. Over time, service firms reoriented their connections toward beef exporters, amplifying their gains from trade. |
| Keywords: | commodity exports, production network, services, China shock. |
| JEL: | F14 L14 O14 O54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mnt:wpaper:2505 |
| By: | Lapo Santarlasci; Armando Rungi; Loredana Fattorini; Nestor Maslej |
| Abstract: | Artificial intelligence has become a key arena of global technological competition and a central concern for Europe's quest for technological sovereignty. This paper analyzes global AI patenting from 2010 to 2023 to assess Europe's position in an increasingly bipolar innovation landscape dominated by the United States and China. Using linked patent, firm, ownership, and citation data, we examine the geography, specialization, and international diffusion of AI innovation. We find a highly concentrated patent landscape: China leads in patent volumes, while the United States dominates in citation impact and technological influence. Europe accounts for a limited share of AI patents but exhibits signals of relatively high patent quality. Technological proximity reveals global convergence toward U.S. innovation trajectories, with Europe remaining fragmented rather than forming an autonomous pole. Gravity-model estimates show that cross-border AI knowledge flows are driven primarily by technological capability and specialization, while geographic and institutional factors play a secondary role. EU membership does not significantly enhance intra-European knowledge diffusion, suggesting that technological capacity, rather than political integration, underpins participation in global AI innovation networks. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.19569 |
| By: | Hao, Zhuang; Zhang, Xudong; Li, Gucheng; Tennekoon, Vidhura S.; Tian, Zerui |
| Abstract: | Farming households face intertwined uncertainties in health and agricultural production, raising critical questions about how ongoing efforts of developing countries on social insurance provision and expansion influence agricultural production decisions. This paper investigates the impact of health insurance on agricultural investments, leveraging the phased rollout of a nationwide basic insurance scheme integration in China that enhanced the affordability and accessibility of health care services for rural residents. We provide robust evidence that insurance integration leads high health-risk farming households to significantly reduce investments in food crop production, with expenses on seeds, fertilizers, pesticides, and films decreasing by 7.5%, 8.5%, 7.6%, and 7.3%, respectively. Empirical results suggest that insurance integration mitigates health risks, encouraging farming households to assume greater production risks. This is reflected in reduced food crop diversification, which may explain the decline in its investment. However, there is no significant evidence of increased engagement in other risky agricultural production activities, such as expanding sown areas or investing in cash crops. Importantly, the reduction in food crop investments does not compromise household income. These findings highlight the complex interplay between health insurance and agricultural decision-making, offering valuable insights into social policies aimed at reducing rural vulnerabilities. |
| Keywords: | Health Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360927 |
| By: | Bach, Amadeus; Onori, Simona; Reichelstein, Stefan; Zhuang, Jihan |
| Abstract: | In response to growing economic and environmental concerns, companies in a range of industries seek to repurpose products (assets) that retain functional capacity beyond their initial first life. This paper examines a generic valuation model for used capacity assets that can either be recycled immediately or repurposed for a second life application. We apply our model framework to lithium-ion batteries retired from electric vehicles, as these assets typically retain substantial energy storage capacity at the end of their first life. Our analysis focuses on two battery chemistries: lithium-iron-phosphate (LFP) and nickel-cobalt-based (NCX).We project their future fair market values in the United States and China. Our findings indicate that repurposing LFP batteries will be economically viable in both countries for the coming decade. In contrast, for most NCX batteries immediate recycling will soon be preferable due to their more valuable raw material content and shorter usable lives. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:333927 |
| By: | Alden Cheng; Martin B. Hackmann |
| Abstract: | We provide causal evidence that patient peer effects generate mortality impacts comparable to provider quality differences. Drawing on administrative records covering 2.6 million stays (2000–2010) across 7, 200 U.S. nursing homes, we exploit plausibly exogenous roommate assignments identified through unique room identifiers. We estimate that assignment to a roommate diagnosed with Alzheimer’s disease (AD) or Alzheimer’s disease related dementias (ADRD), relative to placement in a private room, increases 90-day mortality by 2.1 percentage points (14% of baseline)—equivalent to receiving care at a nursing home one full standard deviation worse in quality. Effects differ sharply by patient type: patients with AD/ADRD benefit substantially from cognitively healthy roommates but not from private rooms, suggesting important peer monitoring and support roles. In contrast, mortality of patients without AD/ADRD does not depend on roommate cognitive health but is reduced in private rooms. A simple assignment rule exploiting this heterogeneity could reduce overall mortality by 0.8 percentage points without additional resources. |
| JEL: | D62 I11 I12 I18 J14 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34538 |