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Trade Liberalization and the Skill Premium in China: Evidence from Individual-Level Panel Data.

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Title: Trade Liberalization and the Skill Premium in China: Evidence from Individual-Level Panel Data.
Authors: Li, Min1 (AUTHOR), Jin, Gang1 (AUTHOR) jingang@nju.edu.cn
Source: Emerging Markets Finance & Trade. Jun2026, p1-14. 14p. 4 Illustrations.
Subject Terms: *Global Financial Crisis, 2008-2009, *Wage differentials, *Free trade, *Economic development, *Income inequality, Panel analysis, Economic conditions in China
Geographic Terms: China
Abstract: This paper examines whether trade liberalization raises or lowers the skill premium in China. Using individual-level panel data from the China Health and Nutrition Survey (CHNS), we exploit the 2008 global financial crisis as an external shock to trade and combine it with cross-provincial differences in pre-crisis trade dependence in a triple-difference framework. The results show that provinces with greater pre-crisis exposure to international trade experienced a larger post-crisis decline in the skill premium. This pattern implies that stronger trade liberalization is associated with a higher skill premium. The effect is more pronounced among younger and male workers and among workers employed in urban areas, non-state-owned enterprises, and smaller firms. The evidence also points to two channels: a contraction in skill-intensive industries and post-crisis fiscal expansion tilted toward unskilled labor demand. These findings provide new evidence on how trade shocks shape wage inequality and human capital incentives in a major developing economy. [ABSTRACT FROM AUTHOR]
Copyright of Emerging Markets Finance & Trade is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: Trade Liberalization and the Skill Premium in China: Evidence from Individual-Level Panel Data.
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  Data: <searchLink fieldCode="JN" term="%22Emerging+Markets+Finance+%26+Trade%22">Emerging Markets Finance & Trade</searchLink>. Jun2026, p1-14. 14p. 4 Illustrations.
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  Data: *<searchLink fieldCode="DE" term="%22Global+Financial+Crisis%2C+2008-2009%22">Global Financial Crisis, 2008-2009</searchLink><br />*<searchLink fieldCode="DE" term="%22Wage+differentials%22">Wage differentials</searchLink><br />*<searchLink fieldCode="DE" term="%22Free+trade%22">Free trade</searchLink><br />*<searchLink fieldCode="DE" term="%22Economic+development%22">Economic development</searchLink><br />*<searchLink fieldCode="DE" term="%22Income+inequality%22">Income inequality</searchLink><br /><searchLink fieldCode="DE" term="%22Panel+analysis%22">Panel analysis</searchLink><br /><searchLink fieldCode="DE" term="%22Economic+conditions+in+China%22">Economic conditions in China</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22China%22">China</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: This paper examines whether trade liberalization raises or lowers the skill premium in China. Using individual-level panel data from the China Health and Nutrition Survey (CHNS), we exploit the 2008 global financial crisis as an external shock to trade and combine it with cross-provincial differences in pre-crisis trade dependence in a triple-difference framework. The results show that provinces with greater pre-crisis exposure to international trade experienced a larger post-crisis decline in the skill premium. This pattern implies that stronger trade liberalization is associated with a higher skill premium. The effect is more pronounced among younger and male workers and among workers employed in urban areas, non-state-owned enterprises, and smaller firms. The evidence also points to two channels: a contraction in skill-intensive industries and post-crisis fiscal expansion tilted toward unskilled labor demand. These findings provide new evidence on how trade shocks shape wage inequality and human capital incentives in a major developing economy. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
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  Data: <i>Copyright of Emerging Markets Finance & Trade is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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      – Type: doi
        Value: 10.1080/1540496x.2026.2684601
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      – Code: eng
        Text: English
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      Pagination:
        PageCount: 14
        StartPage: 1
    Subjects:
      – SubjectFull: Global Financial Crisis, 2008-2009
        Type: general
      – SubjectFull: Wage differentials
        Type: general
      – SubjectFull: Free trade
        Type: general
      – SubjectFull: Economic development
        Type: general
      – SubjectFull: Income inequality
        Type: general
      – SubjectFull: Panel analysis
        Type: general
      – SubjectFull: Economic conditions in China
        Type: general
      – SubjectFull: China
        Type: general
    Titles:
      – TitleFull: Trade Liberalization and the Skill Premium in China: Evidence from Individual-Level Panel Data.
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            NameFull: Li, Min
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          Name:
            NameFull: Jin, Gang
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          Dates:
            – D: 08
              M: 06
              Text: Jun2026
              Type: published
              Y: 2026
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