The Role of Education in Economic Growth through the Sectoral Reallocation of Labor

The main questions of this paper are as follows: Whether and to what extent does rising educational attainment contribute to a country's economic growth by facilitating the reallocation of labor from the agricultural sector to the non-agricultural sector? The transition from the agricultural sector to the non-agricultural sector ("transition" hereinafter) is an important aspect of a country's development. Consider China as an example. In China, around 70% of the labor force worked in the agricultural sector in 1980, whereas only 47% remained in the agricultural sector in 2000. Over the same period of time, China's gross domestic product (GDP) per capita increased from U.S. $173 to$856. In addition, cross-country data demonstrate that developed countries have a lower share of employment in agriculture than less-developed countries. For instance, high income countries had 4% of their employees engaged in the agricultural sector in 2000, whereas middle income countries had 40% of their employees working in the agricultural sector. In low income countries, the share may be even larger: in Bangladesh, for example, more than 60% of employees work in the agricultural sector. Based on these empirical observations, using calibration exercises a number of papers have demonstrated the possibility that income differences across countries can be explained by different onsets of transition (Gollin et al. 2002, 2004, Parente et al. 2000, Restuccia et al. 2003). In contrast, there is little empirical research based on micro-level data studying the factors that affect the speed of transition. As far as I am aware, the most closely related empirical study of transition was carried out by Jeong and Kim (2005) using data for Thailand. However, the authors focused more on replicating gradual transition than on determinants governing the speed of transition. They relied on the assumption of “sector specific complementarity between work-experience and labor†to explain the slow transition, but did not provide direct empirical evidence for this assumption. In contrast to existing research, this paper tries to shed light on one hypothesized factor affecting the speed of transition: raising educational attainment may facilitate the labor force moving from the agricultural sector to the non-agricultural sector. I use a Chinese household panel dataset--the China Health and Nutrition Survey (CHNS)--to measure the extent to which educational attainment raises the probability of a worker obtaining a non-agricultural job. To extract the causal effect of education, I use the increase in the number of secondary schools during the Cultural Revolution (CR) in China (1966 to 1976) as an instrumental variable. Reducing the differences between the peasantry and the rest of the population was identified as being a major goal of the CR; as a result of this ideology, the policies of this period promoted mass education among underserved groups, including rural populations especially in terms of the secondary schooling (Hannum 1999). My preliminary results suggest that one more secondary school per 10,000 people in a province is correlated with an increase in 1.15 years of schooling. Using a Probit model with this instrumental variable, I estimate that one more year of schooling raises the probability a worker will obtain a non-agricultural job by 4.53%. However, what does this estimation imply for transition and aggregate economic growth? In China, the share employed in agriculture has decreased from 68.1% in 1982 to 50% in 2000 (Chinese Statistical Yearbook, 2003). On the other hand, the average years of schooling of workers in China has increased from 5.83 years to 7.66 years (Chinese Population Census 1982, 2000). Hence, this increase in schooling, 1.84 years, may have contributed 8.34% points to the decrease in the agricultural share of employment from 1982 to 2000. In terms of the real GDP growth, accurate growth accounting requires further study. However, a back-of-the-envelope calculation suggests that the decrease in the agricultural employment share due to rising educational attainment implies an increase of 0.65% points of the real GDP per worker growth per annum. Although the growth and level accounting remains to be done, I believe that this paper can contribute to the economic growth literature by testing whether and to what extent education causes growth. Within this research literature, many papers have suggested the possibility of a causal effect of education on growth, but a recent study by Bils and Klenow (2000) questions this causal relationship. For example, if we include the role of education in sectoral reallocation (0.65% point), the contribution of education to the annual growth rate of the real GDP per worker increases from about 20% to 32%. Therefore, we can conclude that education causes growth (at least 12%) and that its contribution to growth is significantEducation; Sectoral Shift; Transition; China

Beauty pays but does investment in beauty?

Being beautiful gives a person an advantage in many settings. Attractive people earn more and have an easier time getting hired. People spend large amounts of money on goods and services to enhance their beauty. Is this enhancement worth pursuing? Research suggests that the expected improvement in beauty from these goods and services is limited. Therefore, despite the large returns from having an attractive appearance, the cost-effectiveness of investment in beauty enhancement is ambiguous. For the average person, the monetary benefits of plastic surgery, medical treatments to increase height, and expensive clothing are not worth the cost

Axion dark matter search using the storage ring EDM method

We propose using the storage ring EDM method to search for the axion dark matter induced EDM oscillation in nucleons. The method uses a combination of B and E-fields to produce a resonance between the $g-2$ spin precession frequency and the background axion field oscillation to greatly enhance sensitivity to it. An axion frequency range from $10^{-9}$ Hz to 100 MHz can in principle be scanned with high sensitivity, corresponding to an $f_a$ range of $10^{13}$ GeV $\leq f_a \leq 10^{30}$ GeV, the breakdown scale of the global symmetry generating the axion or axion like particles (ALPs)

COVID-19 and Employment in South Korea: Trends and Comparison with the 2008 Financial Crisis

We examine the impact of COVID-19 on employment in South Korea as of June 2020. To estimate the causal effect, we use two complementary methods. First, using individual-level data without residence information, we estimate the effects by controlling for detailed characteristics of individuals. Second, using aggregate data without individual characteristics, we exploit the regional variation in the intensity of COVID-19 to measure the effects. We find that the COVID-19 pandemic decreased the employment rate by 0.82%p and increased the unemployment rate by 0.29%p. These estimated effects are 90%–140% larger than those of the 2008 Financial Crisis

Propose with a Rose? Signaling in Internet Dating Markets

The large literature on costly signaling and the somewhat scant literature on preference signaling had varying success in showing the effectiveness of signals. We use a field experiment to show that even when everyone can send a signal, signals are free and the only costs are opportunity costs, sending a signal increases the chances of success. In an online dating experiment, participants can attach “virtual roses” to a proposal to signal special interest in another participant. We find that attaching a rose to an offer substantially increases the chance of acceptance. This effect is driven by an increase in the acceptance rate when the offer is made to a participant who is less desirable than the proposer. Furthermore, participants endowed with more roses have more of their offers accepted than their counterparts.

A red-light-powered silicon nanowire biophotochemical diode for simultaneous CO2 reduction and glycerol valorization

A bias-free photochemical diode, in which a p-type photocathode is connected to an n-type photoanode to harness light for driving photoelectrochemical reduction and oxidation pairs, serves as a platform for realizing light-driven fuel generation from CO2. However, the conventional design, in which cathodic CO2 reduction is coupled with the anodic oxygen evolution reaction (OER), requires substantial energy input. Here we present a photochemical diode device that harnesses red light (740 nm) to simultaneously drive biophotocathodic CO2-to-multicarbon conversion and photoanodic glycerol oxidation as an alternative to the OER to overcome the above thermodynamic limitation. The device consists of an efficient CO2-fixing microorganism, Sporomusa ovata, interfaced with a silicon nanowire photocathode and a Pt–Au-loaded silicon nanowire photoanode. This photochemical diode operates bias-free under low-intensity (20 mW cm−2) red light irradiation with ~80% Faradaic efficiency for both the cathodic and anodic products. This work provides an alternative photosynthetic route to mitigate excessive CO2 emissions and efficiently generate value-added chemicals from CO2 and glycerol. (Figure presented.)

Semi-Supervised Domain Adaptation for Wildfire Detection

Recently, both the frequency and intensity of wildfires have increased worldwide, primarily due to climate change. In this paper, we propose a novel protocol for wildfire detection, leveraging semi-supervised Domain Adaptation for object detection, accompanied by a corresponding dataset designed for use by both academics and industries. Our dataset encompasses 30 times more diverse labeled scenes for the current largest benchmark wildfire dataset, HPWREN, and introduces a new labeling policy for wildfire detection. Inspired by CoordConv, we propose a robust baseline, Location-Aware Object Detection for Semi-Supervised Domain Adaptation (LADA), utilizing a teacher-student based framework capable of extracting translational variance features characteristic of wildfires. With only using 1% target domain labeled data, our framework significantly outperforms our source-only baseline by a notable margin of 3.8% in mean Average Precision on the HPWREN wildfire dataset. Our dataset is available at https://github.com/BloomBerry/LADA.Comment: 16 pages, 5 figures, 22 table

Carrot and stick?: Impact of a low-stakes school accountability program on student achievement

A key concern in the design of education policies relates to the structure of incentives in accountability systems. This paper examines a school accountability program that provides financial support to low-performing schools but has no direct punishment scheme for recipients who do not exhibit improvement. Although the program does not include high-stakes consequences, our estimates indicate that the program reduced the share of underperforming students by 18 percent. This paper's results suggest that to improve student achievement, a school accountability program does not need to set high-stakes consequences that potentially induce unwanted strategic behaviors on the part of school workers