Academic Journal
Trade Liberalization and the Skill Premium in China: Evidence from Individual-Level Panel Data.
| Τίτλος: | Trade Liberalization and the Skill Premium in China: Evidence from Individual-Level Panel Data. |
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| Συγγραφείς: | Li, Min1 (AUTHOR), Jin, Gang1 (AUTHOR) jingang@nju.edu.cn |
| Πηγή: | Emerging Markets Finance & Trade. Jun2026, p1-14. 14p. 4 Illustrations. |
| Θεματικοί όροι: | *Global Financial Crisis, 2008-2009, *Wage differentials, *Free trade, *Economic development, *Income inequality, Panel analysis, Economic conditions in China |
| Γεωγραφικοί όροι: | China |
| Περίληψη: | 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] |
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