The Long-term Consequences of Ordeals: Evidence from the Chinese Sent-Down Movement

Abstract

The Chinese sent-down movement between the mid 1950s to the late 1970s is a suffering period for Chinese sent-down youths. Using the treatment effect model and the ordered probit model, we examine the impact of sent-down experience on sent-down youths’ income and happiness based on the sample of CGSS2003 and CGSS2006. By doing so, we can explore the long-term consequences of one’s suffering experience. The overall sample regression results show that sent-down experience increase 42% of individuals’ income, while reducing 13% of individuals’ happiness. Sub-sample analysis results are robust to the collusion that the sent-down experience makes a positive impact on income and a negative impact on happiness. This study provides objective evidence for the historical evaluation of sent-down movement, new interpretation for the Easterlin paradox from the view of personality latitude, new empirical evidence for supporting the new human capital theory, useful inspiration for the current sent-down policy of college graduates’ employment.