How does globalization affect educational attainment? Evidence from China

I examine the effect of China’s integration into the world economy on high school education in Chinese prefectures between 1991 and 2005. I focus on the reduction in trade policy uncertainty faced by Chinese exporters in the U.S., and use Bartik-style local treatment measures in a difference-in-diff...

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Bibliographic Details
Published inInternational economics (Paris) Vol. 174; pp. 138 - 159
Main Author Liu, Maggie Y.
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.08.2023
Subjects
Education
Globalization
Trade policy uncertainty
WTO
F63
WTO
Education
Globalization
F66
F16
Trade policy uncertainty
J24
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Summary:I examine the effect of China’s integration into the world economy on high school education in Chinese prefectures between 1991 and 2005. I focus on the reduction in trade policy uncertainty faced by Chinese exporters in the U.S., and use Bartik-style local treatment measures in a difference-in-differences empirical framework. I find increases in high school education were attenuated in prefectures facing larger reductions in U.S. tariff uncertainty on unskilled-labor intensive goods — this result is driven by an increased opportunity cost of schooling due to the arrival of low-skill jobs upon the elimination of trade policy uncertainty with the U.S.
ISSN:2110-7017
DOI:10.1016/j.inteco.2023.03.003