1. Sara Hsu

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

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

5.  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.

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

7.  Life expectancy  Contraception  Third phase of demographic transition  Literacy and fertility  Education  Human capital and growth

8.  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 StateBoys Girls Kerala0.4 1.8 Uttar Pradesh27.0 68.0 (Source: PROBE Report)

9.  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

10.  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 P.64

11.  1871 Koburyo of Ministry of Industry; 1877 renamed to Kobu Daigakko (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) P.64

12.  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

13.  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)

14.  Questions?