Title: Compensating the Lost Youth: The Intergenerational Education Compensation of the Send-down Educated Youths on Their Children Speaker: Yuan Liu, Associate Professor, South China Normal University Host: Jin Zhang, Associate professor, RIEM Time: 14:30-16:00, October 30, Friday Venue: Yide H513, Liulin Campus Abstract: The send-down movement interrupts the educated youths’ education. The existing studies find that the educated youths compensate their loss in human capitals by receiving material compensation from their parents or obtaining an informal education degree by themselves after the movement ends. We study the intergenerational compensation effect of the send-down educated youths on their children’s education by using the China Family Panel Survey in 2010. It is found that: (a)In comparison to those urban youths without send-down experience, the send-down educated youth lose 0.41-year schooling, and most of them are interrupted at middle school or high school so that missed the chance of receiving higher education; (2) In comparison to the first child (older than 15) of those family without send-down experience, the counterpart of the family with send-down experience get one more year schooling and has higher probability to go to college or university; (3) there are no significant difference between the second child of these two types of family in educational attainment. The Heterogeneity analysis excludes the effects of personal ability and family background on Children’s education; the IV estimation shows that the send-down policy is exogenous to the educated youth, so the estimation by OLS is unbiased and robust. This paper first testifies the intergenerational education compensation of the exogenous send-down movement, and finds a new mechanism of educated youth to compensate their loss in human capital, and at the same time provides empirical evidence for “the imprecation of unrealized wish” of Gestalt psychology.