American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
The Human Capital Effects of Access to Elite Jobs
American Economic Journal: Applied Economics
vol. 16,
no. 3, July 2024
(pp. 516–48)
Abstract
We study the human capital effects of access to elite bureaucratic jobs in Taiwan, where performance on an examination determines entry into the civil service. Historically, quotas for successful applicants were set based on the 1948 populations of individuals' native provinces in mainland China. This resulted in a higher probability of success on the exam—and, thus, greater access to elite positions—for descendants of certain migrant groups. These preferential quotas were replaced in 1962 with a uniform admissions policy. Using this variation, we find that the incentives created by preferential quotas increased human capital and improved long-run economic outcomes.Citation
Xu, Huayu, and Achyuta Adhvaryu. 2024. "The Human Capital Effects of Access to Elite Jobs." American Economic Journal: Applied Economics, 16 (3): 516–48. DOI: 10.1257/app.20220340Additional Materials
JEL Classification
- D73 Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H83 Public Administration; Public Sector Accounting and Audits
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J45 Public Sector Labor Markets
- M51 Personnel Economics: Firm Employment Decisions; Promotions
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