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FDI Liberalization and Occupational Mobility: Evidence from China

Tue, Jun 21, 2022

Speaker:左雪静(复旦大学经济学院 讲师)

Date:Jun.21 2022 12:00-13:00

ZOOM meeting:85090323577

PW:379514

Link:https://us02web.zoom.us/j/85090323577

Abstract:

In this paper, we rely on the plausibly exogenous relaxations in Foreign Direct Investment (FDI) policies from 2007 to 2015 to study the impact of FDI liberalization on occupational mobility in China. To quantify the policy changes, we create a 4-digit industry level FDI liberalization index and link it with individual-level worker data from the China Family Panel Studies (CFPS) from 2010 to 2016. We find that increase in industries’ openness to FDI leads to an increase in workers’ mobility across occupations. Further instrumental variable strategy analysis verifies a strong positive correlation between the FDI liberalization index and FDI. Specifically, we find that 10% increase in FDI causes workers’ likelihood of switching occupations to increase by 2.75%. Our results are more consistent with the vertical sorting model in occupational choice rather than the horizontal sorting theory because we find that only skilled workers or workers at the top wage distribution, mainly males, are more likely to switch occupations and they enjoy a career progression after the switch. In contrast, the occupation switch behaviors of workers at the bottom wage distribution are not affected by FDI liberalization.

Bio:

左雪静,复旦大学经济学院讲师,美国休斯顿大学经济学博士毕业(2018)。主要研究领域为劳动经济学、实验经济学以及中国经济。特别关注性别平等问题。主要研究成果发表在美国国家科学院院刊(Proceedings of the National Academy of Sciences, 2019)、经济与统计评论(The Review of Economics and Statistics, 2020)。主持国家自然科学基金青年项目(2021-2023)。

 

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