Poverty Spillovers in Human Capital Formation: Evidence from Randomized Class Assignments in China, Journal of Public Economics, 2025 (with Wei Huang, Mi Luo, Yueping Song, and Yiping Wang)
Abstract: This paper investigates the spillover effects of peer poverty on student outcomes using data from a nationally representative, randomly assigned sample of junior high school classes in China. We find that higher classroom poverty rates significantly reduce students' academic performance, non-cognitive skills, and the likelihood of high school and college enrollment. These effects are particularly pronounced among students from lower-income families, while the presence of wealthier peers provides yields little benefit. Mechanisms driving these outcomes include diminished student motivation, poorer classroom climates, reduced parental involvement, and lower teacher attention. Our findings provide new evidence on the impact of peer socio-economic status on student achievement and long-term educational trajectories.
Abstract: Using census data from 2000 to 2015 and a pseudo-event study design, this paper estimates the magnitude, distribution, and trend of the motherhood penalty in China, while examining its relationship with the country’s declining fertility rates. The findings reveal that one-third of working women leave the labor market in the year they give birth, with the penalty persisting for over 8 years. The magnitude of the penalty increased significantly during the study period across most provinces, and regions with larger increases in the penalty experienced sharper declines in fertility rates. A mover-based design analysis shows that when women migrate to provinces with higher motherhood penalties, their fertility rates drop significantly. This study contributes to the literature by applying a novel pseudo-event study approach to cross-sectional data, offering new insights into the interaction between labor market constraints and fertility decisions in a rapidly evolving socio-economic context.
Intergenerational Effects of WWI Military Service (with Desmond Ang and Sahil Chinoy)