Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130332
Authors: 
Ou, Dongshu
Zhao, Zhong
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9643
Abstract: 
We examine the causal impact of China's higher education expansion on labor market outcomes for young college graduates using China's 2005 1% Population Sample Survey. Exploiting variation in the expansion of university spots across provinces and high school cohorts and applying a difference-in-differences model, we find that the expansion of higher education in China decreases unemployment rates, especially among males and high school graduates. However, the policy also decreases women's labor force participation and individual earnings in highly-skilled white-collar jobs. We further discuss potential channels affecting the observed outcomes. Our results illustrate the strong demand for a skilled labor force in China and the broad economic benefits of higher education.
Subjects: 
higher education expansion
labor force participation
unemployment
wage
difference-in-differences
JEL: 
I23
I28
J31
O15
Document Type: 
Working Paper

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