We study the export decision of Chinese manufacturing firms, both public and privately owned enterprises. In 2019, China’s exports of goods accounted for 13% of goods exported in the world and around 20% of China’s GDP. The importance of understanding the determinants of trade patterns in China goes beyond its national borders. Observed export decisions contradict the prediction of the standard trade model...
Since the 1980s, girls’ educational attaintment increased more quickly than boys’. As a result, the gender education gap decreased and even reversed in China. How does the gender earnings gap change in the face of increasing female human capital? What are the implications for the Chinese gender earnings gap in the future? This column will shed light on this interesting topic within and across cohorts.
We incorporate pollution exposure into Becker’s Quantity-Quality (Q-Q) model of fertility and evaluate how air pollution distorts individuals’ fertility behaviors in China. We find that increased pollution over time negatively affects the fertility of ethnic Han people, but does not affect the fertility of ethnic minorities. China’s One-Child Policy increased Han people’s demand for child quality (e.g., health status and education achievement), which can explain the negative association between pollution and fertility for Han people.
The children of cadres have a higher likelihood of owning business in China, and this relationship varies greatly with government intervention in the economy. Connections with government are likely to be the explanation behind this pattern.
If clean air is a valued experience good, then the short-term reduction in pollution in the spring of 2020 due to the COVID-19 shutdown could have persistent medium-term effects on reducing urban pollution levels as cities adopt new “blue sky” regulations to maintain recent pollution progress. Using data from 144 cities in China, we find that the largest experience good effect should take place for cities featuring a high pollution-sensitive population and where air quality has sharply improved during the pandemic. The residents...