Intergenerational Transfer.pdf

NBER WORKING PAPER SERIES INTERGENERATIONAL TRANSFER, HUMAN CAPITAL AND LONG-TERM GROWTH IN CHINA UNDER THE ONE CHILD POLICY Xi Zhu John Whalley Xiliang Zhao Working Paper 19160 /papers/w19160 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 June 2013 We are grateful to the Ontario Research Fund (ORF), the National Natural Science Foundation of China , and Shanghai Pujiang Program (12PJC067) for financial support, and to a seminar group at Western University for comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Xi Zhu, John Whalley, and Xiliang Zhao. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Intergenerational Transfer, Human Capital and Long-term Growth in China under the One Child Policy Xi Zhu, John Whalley, and Xiliang Zhao NBER Working Paper No. 19160 June 2013 JEL No. J13,O11,O53 ABSTRACT We argue that the demographic changes caused by the one child policy (OCP) may not harm China’s long-term growth. This attributes to the higher human capital induced by the