Accumulation of human capital is indispensable to spur economic growth. If students fail to acquire such skills, not only will they have a hard time finding high-wage employment in the future, but the development of the economies in which they work may also stagnate from a shortage of human capital. The overall goal of this study is try to understand if China is ready in terms of the education of its labor force to progress from middle income to high income country status. To achieve this goal, we seek to understand the share of the labor force that has attained at least some upper secondary schooling (upper secondary attainment) and to benchmark these educational attainment rates against the rates of the labor forces in other countries (e.g., high income/OECD countries; a subset of G20 middle income/BRICS countries). Using the Sixth Population Census data, we are able to show that China’s human capital is shockingly poor. In 2010 only 24% of China’s entire labor force (individuals 25-64 years of age) had ever attended upper secondary school. This rate is less than one-third of the average upper secondary attainment rate in OECD countries. China’s overall upper secondary attainment rate and the attainment rate of its youngest workers (25-34 year old workers) is also the lowest of all the BRICS countries (with the exception of India for which data were not available). Our analysis also demonstrates that the statistics on upper secondary education reported by the Ministry of Education (MoE) are overestimated. In the paper, we document when MoE and Census-based statistics diverge and raise three possible policy-based reasons why officials may have begun to have an incentive to misreport in the mid-2000s.
Daniel Stegmueller is a Professor of Quantitative Methods in the Social Sciences at the Graduate School of Social and Economic Sciences, University of Mannheim. He is also an associate member of Nuffield College, University of Oxford, and of CAGE, University of Warwick.
His research lies at the intersection of political economy and political behavior. He studies political preferences and choices in advanced industrialized societies, specifically individuals' preferences for redistribution and redistributive voting. He is interested in how these are shaped by social structure and institutions, but also by basic individual characteristics, such as cognitive and non-cognitive skills.
This seminar is part of the Comparative Politics Workshop in the Department of Political Science and is co-sponsored by The Europe Center.
Daniel Stegmueller
Professor of Quantitative Methods in the Social Sciences
Speaker
University of Mannheim
Monica Martinez-Bravo is an associate professor at CEMFI in Madrid, Spain. She received her Ph.D. in economics from MIT in 2010. Her research interests are in the fields of Political Economy and Economic Development.
This seminar is part of the Comparative Politics Workshop in the Department of Political Science and is co-sponsored by The Europe Center.
Encina Hall West, Room 400 (Graham Stuart Lounge)
Monica Martinez-Bravo
Associate Professor
Speaker
CEMFI
Torben Iversen is Harold Hitchings Burbank Professor of Political Economy at Harvard. His research and teaching interests include comparative political economy, electoral politics, and applied formal theory. He is the author of Capitalism, Democracy, and Welfare (Cambridge UP 2005), Contested Economic Institutions (Cambridge UP 1999), and co-author (with Frances Rosenbluth) of Women, Work, and Power: The Political Economy of Gender Inequality (Yale UP, 2010). He is also the co-editor of Unions, Employers and Central Bankers (Cambridge UP 2000) and has published more than three dozen articles in leading journals and edited volumes. His work has won numerous American Political Science Association prizes including the Victoria Schuck Award, Best Book on European Politics and Society Award, the Luebbert Best Article Award, and the Gabriel Almond Best Dissertation Award. He is a former Guggenheim Fellow and National Fellow at the Hoover Institution. He is currently completing a book-length project with David Soskice on the political representation of economic interests in historical perspective.
This seminar is part of the Comparative Politics Workshop in the Department of Political Science and is co-sponsored by The Europe Center.
Torben Iversen
Harold Hitchings Burbank Professor of Political Economy
Speaker
Harvard University
States make war, and wars make states. The second clause of Tilly's dictum assumes that the fiscal effort that states exert to wage war persists over time. This paper investigates the effect of war on long-term fiscal capacity as a function of two types of war financing instruments: taxes and loans. Tax-waged wars are argued to exert lasting effects on state capacity, as new taxes require enhancements of the state apparatus as well as complementary fiscal innovations. Loan-waged wars may not contribute to long-term state capacity, as countries might default once the war is over, thus preempting any persistent fiscal effect. Importantly, the way war is waged might be endogenous. To cope with this possibility, I exploit unanticipated crashes in the nineteenth-century international capital markets, which temporarily banned warring states from borrowing regardless of their (un)observed characteristics. The analysis shows that countries that fought wars while the international credit markets were down have today higher fiscal capacity, measured by income tax ratios as well as the size of the tax administration. Altogether, the paper advances the conditions under which wars exert positive and lasting effects on state building.
Didac Queralt is a junior professor at the Institute of Political Economy and Governance (IPEG) in Barcelona. He received his Ph.D. from the NYU Politics Department in September 2012.
His research lies at the intersection of comparative political economy and international relations, with a focus on the political economy of fiscal capacity building in Europe (East and West) and the Americas. Using formal methods, he investigates tax compliance in scenarios of low fiscal capacity, as well as the replacement of old forms of taxation (e.g. trade taxes) by modern extractive technologies (e.g. income taxation) that result from deliberate investment in the tax administration. He analyzes the theoretical predictions using contemporary data from developing economies in Latin America and Eastern Europe, as well as historical data for European powers in the pre-modern era.
In addition, he investigates the origins of direct taxation in the Western World, both with macro- and micro-data, as well as the electoral politics underlying the expansion of the fiscal state. Currently, he is involved in a quasi-experimental test of the legacy of pre-modern wars on state capacity, and an field experiment on tax progressivity in Colombia,
This seminar is part of the Comparative Politics Workshop in the Department of Political Science and is co-sponsored by The Europe Center.
Encina Hall West, Room 400 (Graham Stuart Lounge)
Didac Queralt
Junior Professor
Speaker
Institute of Political Economy and Governance (IPEG), Barcelona
The fifteenth session of the Korea-U.S. West Coast Strategic Forum, held in Korea on November 17, 2015, convened senior South Korean and American policymakers, scholars and regional experts to discuss North Korea policy and recent developments on the Korean Peninsula. Hosted by the Korea Program at the Walter H. Shorenstein Asia-Pacific Research Center at Stanford University, the Forum is also supported by the Sejong Institute.
A conference that honored the life and scholarly contributions of Stanford economist Masahiko Aoki was held at Stanford. Dozens of friends, family and community members paid tribute to Aoki, the Henri and Tomoye Takahashi Professor of Japanese Studies and Professor of Economics, emeritus, who died in July at the age of 77.
Eleven renowned economists and social scientists gave talks on Aoki’s extensive fields of research in economic theory, institutional analysis, corporate governance, and the Japanese and Chinese economies at the Dec. 4 conference, which was followed by a memorial ceremony the next day.
“When we contacted people to speak at this conference, few people turned us down,” said Stanford professor Takeo Hoshi. “The reason for this is Masa. It shows how much Masa was respected and how much his work is valued.”
The events were hosted by the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center, the Freeman Spogli Institute for International Studies (FSI), Graduate School of Business, Department of Economics and the Stanford Institute for Economic Policy Research (SIEPR).
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Aoki came to Stanford in 1967 as an assistant professor, held faculty appointments at Kyoto University and Harvard, and returned to Stanford in 1984. He retired to emeritus status at Stanford in 2005.
Throughout the conference, Aoki was described as an astute professor and colleague, valuable mentor and loyal friend by the many speakers and participants who shared works, stories and multimedia featuring their interactions with Aoki.
Aoki pioneered the field of comparative institutional analysis (CIA) with a team of scholars at Stanford: Avner Greif, John Litwack, Paul Milgrom and Yingyi Qian, among others. CIA analyzes and compares different institutions that evolve to regulate different societies.
Masahiko Aoki (far left) is pictured with colleagues on the Stanford campus in the late 1960s.
“Masa had a good background in looking at the economy as a whole, financial institutions as a whole – not just how numbers or actors economically interact – but also the people who interact within a given institutional framework,” said Koichi Hamada, a professor emeritus at Yale University.
“Masa had a good background in looking at the economy as a whole, financial institutions as a whole – not just how numbers or actors economically interact…”
-Koichi Hamada, Yale University
Aoki applied a systematic lens to everything he studied, a “take society as a total entity” approach, Hamada said.
Aoki grew up in Japan, and developed a deep interest in Japanese politics at an early age. He was actively involved in student movements in the early 1960s, at the heart of which was a campaign against a controversial U.S.-Japan security treaty. China became another great interest of his as the country began to undergo economic transformation and modernization.
Throughout his career, Aoki traveled to Japan and China often, and sought to better inform policy debates by engaging scholars, government leaders and journalists there.
He believed in sharing lessons learned from his own scholarly analyses on what constitute institutions, particularly the “people” aspects – the employees, their cognitive abilities and levels of participation.
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Top left to right: Yingyi Qian of Tsinghau University talks with Avner Greif of Stanford University and Hugh Patrick of Columbia University. / Koichi Hamada of Yale University delivers his remarks titled "Masahiko Aoki: A Social Scientist." Bottom: Reiko Aoki, the wife of Masahiko Aoki, listens in to Kenneth Arrow, a professor emeritus at Stanford University. Credit: Rod Searcey
Aoki was not only a scholar of institutions but also a builder of them.
“Amid a time of diplomatic tensions between China and Japan…Masa was able to bring Japanese, Chinese and American economists together to study and do research,” said Yingyi Qian, dean and professor at the school of economics and management at Tsinghua.
At Stanford, Aoki played a leading role in the creation of the Stanford Japan Center and a multi-day conference that convened annually in Kyoto on issues of mutual concern between Asia-Pacific countries and the United States.
“Masa Aoki’s legacy will serve as an integral guidepost for many years to come. May his soul rest in peace.”
-Kotaro Suzumura, Hitotsubashi University
Earlier this year, Aoki was hospitalized for lung disease. Even at that stage, he worked tirelessly to revise a paper that examines the institutional development of China and Japan in the late 19th to early 20th centuries.
Aoki was also fondly remembered for his mentorship of students at Stanford and other universities he taught at.
“He was an original and unique professor – quite different from others that I’ve met in many respects. He was generous with his time, not hierarchical,” said Miguel Angel Garcia Cestona, who studied for a doctorate at Stanford and now teaches at the Universitat Autonoma de Barcelona.
Garcia Cestona, among other former students, spoke of Aoki as a friend and shared memories of their former professor hosting them at his home.
Students in rural China are dropping out of secondary school at troubling rates. While there is considerable quantitative research on this issue, no systematic effort has been made to assess the deeper reasons behind student decision making through a mixed-methods approach. This article seeks to explore the prevalence, correlates and potential reasons for rural dropout throughout the secondary education process. It brings together results from eight large-scale survey studies covering 24,931 rural secondary students across four provinces, as well as analysis of extensive interviews with 52 students from these same study sites. The results show that the cumulative dropout rate across all windows of secondary education may be as high as 63 per cent. Dropping out is significantly correlated with low academic performance, high opportunity cost, low socioeconomic status and poor mental health. A model is developed to suggest that rural dropout is primarily driven by two mechanisms: rational cost-benefit analysis or impulsive, stress-induced decision making.
This paper studies how private information is incorporated into prices, using a unique setting from the eighteenth century that is closer to stylized models of price discovery than modern-day markets. Specifically, the paper looks at English securities traded in both London and Amsterdam. Private information reached Amsterdam through sailing boats that sailed only twice a week and in adverse weather could not sail at all. Results are consistent with a Kyle model in which informed agents trade strategically. Most importantly, the speed of information revelation in Amsterdam depended on the expected time until the private signal would become public.
Quantitative estimates of the impacts of climate change on economic outcomes are important for public policy. We show that the vast majority of estimates fail to account for well-established uncertainty in future temperature and rainfall changes, leading to potentially misleading projections. We reexamine seven well-cited studies and show that accounting for climate uncertainty leads to a much larger range of projected climate impacts and a greater likelihood of worst-case outcomes, an important policy parameter. Incorporating climate uncertainty into future economic impact assessments will be critical for providing the best possible information on potential impacts.
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