Measuring Interprovincial Flows of Human Capital in China: 1995–2000

Abstract

This study measures the consequences of interprovincial migration in China in terms of the flows of human beings and the flows of human capital using two micro datasets. First, this study uses a household income survey dataset to estimate the earning returns to education as one of the two measurements of human capital. Then, the micro-dataset of the 2000 Chinese Census is used to calculate the flows of human capital among provinces by using the results from the estimation of human capital. The flows of human capital are then compared to the flows of human beings to see whether they go in the same directions and to the same extent. The results indicate that although in most of the cases, the flows of human beings and the flows of human capital are in the same directions, there are some cases that a province experienced a loss in human beings but a net gain in human capital, or vice versa. Second, some provinces are more adversely affected by the flows of human capital than others, which may not be seen by merely examining the flows of human beings. Third, non-hukou migration is different from hukou migration in volume, in scope of both gains and losses of human beings and human capital, and in directions for some provinces. Finally, we can conclude that measuring the flows of human capital is a useful way to observe how migration affects the potential of regional distribution of development.