Educational Responses to Migration-Augmented Export Shocks: Evidence from China

May 2021

Yao Pan (George Washington University and Aalto University)
Jessica Leight (International Food Policy Research Institute)

IIEP working paper 2021-14

Abstract: This paper analyzes the effects of positive shocks to export-oriented industries following China’s accession to the World Trade Organization on human capital investment in urban and rural areas. Exploiting cross-county variations in the reduction in export tariff uncertainty both locally and at plausible migration destinations, we find that youth reaching matriculation age post-accession in counties experiencing a larger export shock show a lower probability of enrolling in high school. In urban areas, this effect is driven by local shocks, while in rural areas, it is primarily driven by shocks at migration destinations. Urban youth show evidence of a deterioration in labor market outcomes linked to declining matriculation rates, while there is no evidence of significant labor market effects for rural youth.

JEL Codes: F14, F16, J24, O15, O18, O19

Key Words: Export Shock, Human Capital Attainment, Urban-rural Inequality, China

Emerging Trade Battlefield with China: Export Competition and Firms’ Coping Strategies

October 2019

Yao Pan, Katariina Nilsson Hakkala

IIEP working paper 2019-14

Abstract: This paper analyzes how intensified Chinese export competition affects the exports and product ranges of Western firms. Using a novel identification strategy that exploits changes in Chinese export policies, we find that Chinese export competition reduces aggregate product level exports of Finland. Firm-level analysis using administrative data further shows that Chinese competition leads to substantial price cuts to retain market shares, especially for homogeneous products. In addition, we also discover that firms respond to the increased level of Chinese export competition by dropping their marginal products. Taken together, these results highlight the importance of export competition with China for developed countries.

Keywords: Trade Flows, Export Competition, Firm-level, Product Mix, China

JEL Classification: F14, F61, L25

Agricultural extension, intra-household allocation and malaria

March 2019

Yao Pan and Saurabh Singhal

IIEP Working Paper 2019-4

Abstract: Can agricultural development programs improve health-related outcomes? We exploit a spatial discontinuity in the coverage of a large-scale agricultural extension program in Uganda to causally identify its effects on malaria. We find that eligibility for the program reduced the proportion of household members with malaria by 8.9 percentage points, with children and pregnant women experiencing substantial improvements. An examination of the underlying mechanisms indicates that an increase in income and the resulting increase in the ownership and usage of bednets may have played a role. Taken together, these results signify the importance of financial constraints in investments for malaria prevention and the potential role that agricultural development can play in easing it.

Keywords: Malaria, Intra-household Allocation, Agricultural Extension, Regression Discontinuity, Uganda

JEL Classification: I15, I12, D13, O12, Q16.