The Long Term Impacts of the Cultural Revolution on Economic Performance of Urban Residents in China

Type Journal Article
Title The Long Term Impacts of the Cultural Revolution on Economic Performance of Urban Residents in China
Author(s)
Publication (Day/Month/Year) 2014
URL http://econ.ucr.edu/seminars_colloquia/2014-15/applied_economics/Zhou paper for 10 6 14 seminar.pdf
Abstract
The Chinese Cultural Revolution was one of the most disruptive events in human history
between 1966 and 1977. This study explores multiple datasets, constructs indexes measuring
intensities of being treated by the large-scale closure of schools as well as the forced migration
and evaluate the long-term impacts of exposure to the Cultural Revolution in urban China. Based
on the theoretical framework of life-cycle model, empirical evidence consistently shows the
Cultural Revolution has produced a lasting negative effect on permanent income for the
subjected birth cohorts (1946-1961) since 1990s and this effect was amplified as Chinese market
economy increasingly evolved. The mechanism of the impact includes channels of productivity
determinants (e.g., education attainment, work experience and health condition), marriage life,
and attitude towards the determinants of success. These conclusions are shown to be robust to
contemporaneous and cross-regions comparisons, as well as to a variety of controls for family
background and exposure to the Great Famine.

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