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<p>This paper examines the impact of urban growth on years of schooling among native youth in China. Combining the expansion of urban area induced by governments and individual-level census data, we find that: (1) The years of schooling for the treatment cohort increased by an average of 0.46&#xa0;years following the county–city mergers, which serve as a key policy instrument for promoting urban growth in China. (2) This increase is primarily driven by the expansion of the transportation infrastructure and the labor market, which improves expected returns to education and incentivizes individuals to invest in human capital. (3) The effects are more pronounced for rural youth and children whose parents have lower levels of education. In conclusion, this paper finds that urban growth in China contributes to human capital and promotes educational equity in peripheral regions surrounding major cities.</p>

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State-led urban growth and human capital: the impact of county–city mergers on native youth education in China

  • 期刊论文

  • 发表日期：

    2026年5月1日

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  • Ting Xie,
  • Wenhua Liu

摘要

This paper examines the impact of urban growth on years of schooling among native youth in China. Combining the expansion of urban area induced by governments and individual-level census data, we find that: (1) The years of schooling for the treatment cohort increased by an average of 0.46 years following the county–city mergers, which serve as a key policy instrument for promoting urban growth in China. (2) This increase is primarily driven by the expansion of the transportation infrastructure and the labor market, which improves expected returns to education and incentivizes individuals to invest in human capital. (3) The effects are more pronounced for rural youth and children whose parents have lower levels of education. In conclusion, this paper finds that urban growth in China contributes to human capital and promotes educational equity in peripheral regions surrounding major cities.