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Population and Human Capital

Population and Human Capital. Sara Hsu. Demographic Theory. Population demographics Life expectancy Human capital Theory of demographic transition. China and its Population. One-child policy Third stage of demographic transition Aging population Literacy rates

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Population and Human Capital

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  1. Population and Human Capital Sara Hsu

  2. Demographic Theory Population demographics Life expectancy Human capital Theory of demographic transition

  3. China and its Population One-child policy Third stage of demographic transition Aging population Literacy rates Human capital and work force

  4. China’s “Missing Girls” China’s deep-seated preference for boys has led to a case of the ‘missing girls”—girl babies and fetuses are aborted or killed in order to allow for the production of boy children. Legalization of abortion in 1979 and introduction of ultrasound technology in the 1980s led to a large number of sex-selective abortions. The Chinese government has been wary of the effect of the “missing girls” phenomenon.

  5. China and Entrepreneurship Three Waves: 1980s: entrepreneurial peasants began entrepreneurial activities; TVEs development; 1990s: government officials and scholars went into business (xiahai) Around 2000, internet bubble attracted both overseas returned scholars and domestically best educated people to start-ups. From rent-seeking to value-creation;

  6. India and its Population Life expectancy Contraception Third phase of demographic transition Literacy and fertility Education Human capital and growth

  7. Growth in the literacy rate: 52.2% in 1991 to 65.38% in 2001 Significant narrowing of the gender gap: Increase in share of girls’ enrolment in primary enrolment from 20% in 1950-51 to 44% in 1999-2000 Five-fold increase in the number of teachers registered since 1950-51 Tremendous success in terms of higher education provision Percentage never enrolled in primary school shows great variation by state State Boys Girls Kerala 0.4 1.8 Uttar Pradesh 27.0 68.0 (Source: PROBE Report) India and Human Capital

  8. Japan and its Population Meiji period rise of birth and death rates Population growth lower in first and second stages of demographic transition than Chindia School System Rule of 1872 Universities and technological progress Lifetime employment and skill training

  9. P.64 Japan Human Capital • First students: 7 students sent to Netherlands in 1862 (naval training) • By 1880s, 80 Japanese studied engineering abroad (shipbuilding, mechanics, civil engineering, mining & metallurgy, military, chemistry) • Destination: UK (28), US (20), France (14), Germany (9), Netherlands (8) • They received top-class education and could easily replace foreigners after coming back • They mostly worked in government (no modern private industries existed at first)—Ministry of Interior, MoF, Army, Navy, Ministry of Industry

  10. P.64 Japan and KobuDaigakko • 1871 Koburyo of Ministry of Industry; 1877 renamed to KobuDaigakko(Institute of Technology); 1886 merged with Tokyo Imperial University • 8 courses: civil engineering, mechanical engineering, shipbuilding, telecommunication, chemistry, architecture, metallurgy, mining (classes in English) • Educating top-class engineers (import substitution)

  11. Bottom Line All three countries reached the third phase of demographic transition Gender differences in population and human capital exist-”missing girls” in China and primary school attendance in India Improvements in human capital have helped increase productivity in all three countries

  12. Did You Know? The average salary of a graphic designer in India is $11,000 (v $57K in US) Average salary of software developer in India is $14,000 (v $94K in US) Average salary of a medical transcriber in India is $3100 (v $30K in US)

  13. Fin Questions?

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