Economics

The effects of foreign product demand-labor transfer nexus on human capital investment in China

H. Hu, Y. Zhu, et al.

This fascinating research by Hui Hu, Yuqi Zhu, Chien-Chiang Lee, and Alastair M. Morrison delves into how labor transfer triggered by foreign product demand is reshaping human capital investment in China. Discover how increased demand is shifting workers from agriculture to non-agricultural roles, fostering greater education investments, and promoting gender equality in this critical area.

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Playback language: English

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Abstract

This research analyzes the impact of labor transfer (LT) caused by foreign product demand (FPD) on human capital investment in China using data from about 73,000 individuals. Three key findings emerge: 1) Increased FPD leads to more labor transfers from the agricultural to the non-agricultural sector. 2) This LT motivates higher human capital investment and promotes gender equality in such investment. 3) LT enhances income, exacerbating intergenerational inequality in human capital investment due to better-educated individuals investing more in their children's education.

Publisher

Humanities & Social Sciences Communications

Published On

Sep 25, 2023

Authors

Hui Hu, Yuqi Zhu, Chien-Chiang Lee, Alastair M. Morrison

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