Abstract
Using about 73,000 individuals’ data in China, this research, for the first time, analyzes the impact of labor transfer (LT) caused by foreign product demand (FPD) on human capital investment. Two-stage least squares estimation with the instrumental variable is applied and produced three findings. First, the FPD-LT model illustrates that with FPD increasing, more labor transfers from the agricultural sector to the non-agricultural sector. Second, working in the non-agricultural sector requires higher-level skills than in the agricultural sector. LT from agricultural sector to non-agricultural sector motivates people to invest more in human capital and promotes gender equality in human capital investment. Third, labor transferring from the agricultural sector to the non-agricultural sector enhances individuals’ income, leading to the increase of children’s human capital investments. The better-educated people make greater investment in their children’s human capital, exacerbating intergenerational inequality.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
