When the Young Meet the Old: Evidence on Education Upgrading in China

Dai, Tianran and Zhao, Yaohui (2024): When the Young Meet the Old: Evidence on Education Upgrading in China.

Abstract

This paper proposes an explanation for the increased college attainment of adults in China from 1990-2000. Using the timing of China’s family planning policies implemented in the 1970s, we show that the early adoption of the policies increased the relative supply of young college labor, causing older adults to upgrade their education at the tertiary level. We find that the college wage premium for older adults increased from 1990-2000, matching the time when young college workers entered the labor market. Our results suggest that college rationing is costly to society, especially in the era of rising returns to education.

• Item Type: MPRA Paper
• Language: English
• Keywords: adult labor, birth cohorts, Chinese family planning policies, migration
• Subjects: I - Health, Education, and Welfare > I2 - Education and Research Institutions > I24 - Education and Inequality; J - Labor and Demographic Economics > J1 - Demographic Economics > J10 - General; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J20 - General

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