主题:Trade Liberalization and Long Term Human Capital Accumulation
Abstract:This paper studies the impact of trade liberalization on individual's long term human capital accumulation, including school attendance, labor market outcomes, noncognitive and intergenerational outcomes. We use data for China from 1990 to 2010, a period when the country became increasingly involved in global trade. By constructing prefecture-year level tariff barriers, our identification strategy exploits differences in the exposure to trade shocks between individuals aged 16 and those of other ages within the same district. Empirical results suggest that the trade liberalization significantly decrease long term human capital accumulation. Specifically, it leads to a decrease in high school attendance and completed years of schooling. It also reduces long term wages and increases the possibility for one's employment in low skilled occupations. In addition, it decreases non-cognitive outcomes and their children's birth weight and health status.