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Title: High-Skilled Services and Development in China

Citation Type: Miscellaneous

Publication Year: 2019

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Abstract: We document that the employment share of high-skilled services is much lower in China than in countries with similar GDP per capita. We build a model of structural change between goods, low-skilled services, and high-skilled services to account for this observation. We find that large distortions limit the size of high-skilled services in China. If they were removed, both high-skilled services and GDP per capita would increase considerably and the effects of technological progress and education on GDP per capita would be considerably larger. This suggests that distortions in high-skilled services importantly hold back the development of China.

Url: http://www.public.asu.edu/~bherrend/Unpublished Papers/ChinaHSDevelopment02.pdf

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Authors: Herrendorf, Berthold; Fang, Lei

Publisher: Federal Reserve Bank of Atlanta

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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