College Enrollment Expansion And China Manufacturing Productivity

This paper,taking the ‘College enrollment expansion' policy implemented by the Chinese Ministry of education in 1999 as a quasi natural experiment,uses the method of DID to explore the effect of the increase of human capital caused by the expansion of education on the productivity of China's manufacturing industry and its possible influence channels.The results are as follows:(1)In general,the growth of human capital has a significant positive effect on the productivity of Chinese manufacturing enterprises,and the average productivity of enterprises in the city with the highest intensity of human capital is 25.43% higher than that in the city with the lowest human capital intensity.(2)The type of human capital surge has a heterogeneous effect on Enterprise Productivity: the surge of I human capital tends to enhance the productivity of the enterprise,while the increase of II human capital weakens the promotion of enterprise productivity.Meanwhile,the surge of human capital has a stronger spillover effect on the private property,the productivity of enterprises located in coastal cities and the enterprises with innovative R & D activities.(3)In the region where the system environment is more perfect,the increase of human capital tends to promote the productivity of enterprises,and the productivity spillover effect of the I type of human capital increases is greatly influenced by the regional institutional environment.(4)The human capital surge has significantly enhanced the productivity of Chinese manufacturing enterprises through the reconfiguration effect of resources.Further channel test results show that the improvement of the efficiency of redistribution of employment resources and the reduction of high efficiency enterprise exit risk are the possible channels for promoting the productivity of manufacturing enterprises to promote the increase of human capital.The above conclusion shows that the surge of China's large human capital caused by educational expansion has a significant positive impact on the promotion of productivity of Chinese manufacturing enterprises,and tends to improve the allocation effect of employment resources.This discovery helps to objectively and accurately assess the economic effect of the educational reform policy represented by the ‘School enrollment expansion',and to a great extent it is affirmed the positive significance of the strategy of ‘revitalizing the country through science and education',which has important policy implications for developing countries to formulate and adjust educational policies.