We examine the impact of China’s Rural E-Commerce Comprehensive Demonstration (RECD) project on the urban-rural income gap. Using county-level data from 2006 to 2022 and a time-varying difference-in-differences design, we find that participation in the RECD project led to a significant reduction in urban-rural income disparity. The effects were especially pronounced in less-developed regions, poverty-designated counties, and areas with weaker digital infrastructure and gains were disproportionately concentrated among rural households. These “biased” digital dividends contrast with market-driven e-commerce development, such as Taobao Villages, which tended to exacerbate inequality.
Higher compensation incentivizes workers to work additional hours and stay at the firm, while increased monitoring enhances work quality but also increases quitting by workers.
We find that people born in the fourth quarter tend to have better lifecycle outcomes than others in China. More importantly, this birth quarter effect is significantly larger for females than for males. Such a gendered pattern is likely driven by seasonal variations in household resources induced by agricultural seasonality, which may exert gender-differentiated effects on intrahousehold neonatal investment due to son preference. These findings have meaningful implications for the role of economic development in reducing gender inequality through the (gender-neutral) increase in household resources.
China’s exports have increased dramatically in recent decades. We build a multi-sector spatial general equilibrium model and combine rich data sources to account for China’s export surge between 1990 and 2005 from three policy changes: China’s import tariffs, tariffs imposed on China’s exports, and barriers to internal migration in China. We find that the three policy changes jointly accounted for 30% of China’s export growth between 1990 and 2005 and that there is a positive interaction between tariff and migration policies.
How do we cut carbon emissions without slowing economic growth? One way is through offset markets: markets to buy reductions in emissions from parties all over the world. Offsets are meant to incentivize projects that cut emissions. Instead of reducing emissions themselves, firms or countries can pay others to do so on their behalf. This trade in abatement can potentially lower the costs of bringing emissions down.