Publication Type
PhD Dissertation
Version
publishedVersion
Publication Date
5-2025
Abstract
This dissertation investigates the critical role of political and culturally embedded institutions in shaping human capital investment and firm behavior, focusing on three distinct but related areas. Chapter 1 investigates how institutional quality influences educational choices in China, with a focus on behavioral responses to the anti-corruption campaign. The study finds that politically connected students from regions more a!ected by the campaign are significantly more likely to pursue further education – especially those with non-STEM majors, weaker academic performance, and stronger political ties. The analysis of underlying mechanisms suggests that as the employment environment became more equitable, connected individuals responded by strengthening their educational qualifications to remain competitive. This research advances our understanding of human capital investment decisions and provides new insights into the e!ects of labor market cronyism. Chapter 2 uses administrative data from a leading university in Hong Kong to examine how on-campus housing a!ects students’ academic and non-academic outcomes. Exploiting random variation in housing assignment, the study finds that hall residence reduces GPA and job o!ers at graduation, with stronger e!ects observed among male students. These outcomes appear to be driven by reduced study time and increased engagement in extracurricular activities. Additionally, extended hall residence is associated with higher student satisfaction, potentially reflecting the positive influence of peer interactions fostered through participation in hall activities. These results contribute to the literature on how college consumption amenities influence human capital accumulation by providing causal evidence on both academic and non-academic outcomes. Chapter 3 explores how religious beliefs shape corporate governance by analyzing a national survey of private firms in China. Two-stage least squares (2SLS) estimates indicate that religious entrepreneurs – particularly those a"liated with Eastern religions such as Buddhism – are more likely to maintain concentrated family ownership and control. In contrast, no significant e!ects are observed for a"liations such as Islam and Protestantism after controlling for observable characteristics. Mechanism analysis suggests that risk aversion and distrust of outsiders, reinforced by strong kinship ties, help explain these patterns. By o!ering robust evidence on the link between religion and business practices, this study enriches the dialogue on the prevalence of family firms within diverse cultural and institutional contexts.
Keywords
Human capital investment, Labor market outcomes, Institution, Cronyism, Religiosity
Degree Awarded
PhD in Economics
Discipline
Macroeconomics
Supervisor(s)
HUANG, Fali
First Page
1
Last Page
149
Publisher
Singapore Management University
City or Country
Singapore
Citation
ZHU, Xiaofan.
Essays on institutions and human capital. (2025). 1-149.
Available at: https://ink.library.smu.edu.sg/etd_coll/707
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.