The effects of foreign product demand-labor transfer nexus on human capital investment in China
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 fi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer Nature
2023-09-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-023-02136-5 |
| _version_ | 1827635179793940480 |
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| author | Hui Hu Yuqi Zhu Chien-Chiang Lee Alastair M. Morrison |
| author_facet | Hui Hu Yuqi Zhu Chien-Chiang Lee Alastair M. Morrison |
| author_sort | Hui Hu |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-09T15:24:33Z |
| format | Article |
| id | doaj.art-a15c89d6942b4bd2a795db5db7d21b3d |
| institution | Directory Open Access Journal |
| issn | 2662-9992 |
| language | English |
| last_indexed | 2024-03-09T15:24:33Z |
| publishDate | 2023-09-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj.art-a15c89d6942b4bd2a795db5db7d21b3d2023-11-26T12:37:34ZengSpringer NatureHumanities & Social Sciences Communications2662-99922023-09-0110111310.1057/s41599-023-02136-5The effects of foreign product demand-labor transfer nexus on human capital investment in ChinaHui Hu0Yuqi Zhu1Chien-Chiang Lee2Alastair M. Morrison3Economic Development Research Centre, Wuhan UniversitySchool of Economics and Management, Wuhan UniversityAdnan Kassar School of Business, Lebanese American UniversitySchool of Management and Marketing, Greenwich Business School, University of Greenwich, Old Royal Naval College, Park RowAbstract 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.https://doi.org/10.1057/s41599-023-02136-5 |
| spellingShingle | Hui Hu Yuqi Zhu Chien-Chiang Lee Alastair M. Morrison The effects of foreign product demand-labor transfer nexus on human capital investment in China Humanities & Social Sciences Communications |
| title | The effects of foreign product demand-labor transfer nexus on human capital investment in China |
| title_full | The effects of foreign product demand-labor transfer nexus on human capital investment in China |
| title_fullStr | The effects of foreign product demand-labor transfer nexus on human capital investment in China |
| title_full_unstemmed | The effects of foreign product demand-labor transfer nexus on human capital investment in China |
| title_short | The effects of foreign product demand-labor transfer nexus on human capital investment in China |
| title_sort | effects of foreign product demand labor transfer nexus on human capital investment in china |
| url | https://doi.org/10.1057/s41599-023-02136-5 |
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