NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Human-Capital Externalities in China

Edward L. Glaeser, Ming Lu

NBER Working Paper No. 24925
Issued in August 2018
NBER Program(s):The Public Economics Program

This paper provides evidences of heterogeneous human-capital externality using CHIP 2002, 2007 and 2013 data from urban China. After instrumenting city-level education using the number of relocated university departments across cities in the 1950s, one year more city-level education increases individual hourly wage by 22.0 percent, more than twice the OLS estimate. Human-capital externality is found to be greater for all groups of urban residents in the instrumental variable estimation.

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Document Object Identifier (DOI): 10.3386/w24925

 
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