SOE Layoffs, Family Resources and Children’s’ Education
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| Title | SOE Layoffs, Family Resources and Children’s’ Education
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| Author | Zhao Ying |
| Organization | Public Finance and Taxation School of Zhongnan University of Economics and Law |
| Email | zhaoying0504@gmail.com |
| Key Words | SOE Reform; Layoff; Human Capital; Education |
| Abstract | The incomes of the layoffs shrink considerably due to the SOE reforms in China, thus leads to the change of family resources and exert its influences on the human capital formation of their children, which exact impacts have not been measured yet. This paper analysis this kind of impacts after ruling out the potential drawbacks of identification problem of early retire workers, workers with no pay or voluntarily leave the job by considering the criteria of job change and income shift while utilizing the data from CHNS ranging from 1989 to 2011. The results show that the layoff from SOEs’ do negatively affect the years of receiving the education on their children for about -4.3%~-6.9%. The negative impacts peak for those who lose their job from SOEs’ during 1993 and 2000. The re-employment of the layoffs contributes not only to the own and family incomes, but the feasible way to avoid the intergenerational human capital depreciation. The negative impacts of the layoff parents’ on the children’s education are primarily reflected in the postpone of education phases rather than termination of it. The potential mechanism for this relatively human capital deprecation is the direct reduction of family resources planned for the children, which is exemplified by the intergenerational transmission of risk attitudes and reforms in the education systems. Discovers from here provide the evidences on family resources on children’s education in China under the human capital framework initiated by Becker (1994), which implies the assurance of family resources are key to escape the intergenerational human capital depreciation. |
| Serial Number | WP1055 |
| Time | 2016-04-26 |
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