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International economic and trade forum NO.64

2024-05-31 11:19:35


FDl, Human Capital Accumulation, and Intergenerational Occupational Upward Mobility


This paper analyses the impact of FDI Liberalization on human capital accumulation and intergenerational occupational mobility. We exploit quasi-exogenous variation in FDI liberalization induced by regulatory relaxation, together with differences in initial industry composition across cities, for identification. Using a sub-national data from 2000 to 2005, we find that individuals living in cities with greater exposure to FDI Liberalization exhibit a higher likelihood of being in a better occupation than their fathers. In terms of mechanisms, FDI Liberalization leads to a greater demand for high-skilled labor and skill premium, which facilitates intergenerational occupational mobility. Consistent with this hypothesis, we observe individuals in high FDI exposure cities are likely to work in high skill-intensive occupations and achieve higher educational attainment than their fathers. These effects are primarily attributed to high-skill FDI shocks. Those deciding to attend college when FDI shock occurs are the primary drivers behind the skill premium mechanisms.


Qing Shi, PhD in Economics, Associate Professor and master tutor of School of Economics, Shanghai University. Her research interests include international trade theory and policy, international trade and labor market, industrial chain and supply chain, etc. At present, she has published (accepted) more than 20 papers in authoritative journals at home and abroad, such as European Economic Review, Quarterly Journal of Economics, World Economy, China Industrial Economy, Research on Quantitative and Technical Economics, Finance and Trade Economics, etc. Presided over the national social science general project, National self-science Youth project, Shanghai Zhe Society general project, Shanghai Science and Technology Commission general project and other topics, and participated in a number of national social science major projects, major projects of the Ministry of Education.

Time: May 16 ,2024 9:00

Venue: B408,ZhixinBuilding,Central Campus