American Economic Journal: Economic Policy
no. 3, August 2023
By exploiting the large quantity and rich variety of special economic zones (SEZs) in China, this study investigates how such zones affect human capital investment. Results show that SEZs significantly increase the local high school enrollment rate, but the impact varies across zone types: technology-oriented zones encourage education, while export-led zones discourage it. The increased job opportunities and wage premiums inside SEZs for employees with high school education increase high school enrollment, while such opportunities and wages for employees with middle school education decrease enrollment. A very small portion of the impact, if any, can be attributed to increased income.
Lu, Fangwen, Weizeng Sun, and Jianfeng Wu.
"Special Economic Zones and Human Capital Investment: 30 Years of Evidence from China."
American Economic Journal: Economic Policy,
Analysis of Education
Returns to Education
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
Other Spatial Production and Pricing Analysis