“…Many studies consider China's higher education expansion as a supply shock of skilled labors (Knight et al, 2017;. While their analysis of labor supply effects is at a more aggregate level (mostly prefecture level), we 3 Several studies on China's higher education expansion policy mainly focus on its effect on wage (Knight, Deng, & Li, 2017;Li, Ma, Meng, Qiao, & Shi, 2017), firm performance (Che & Zhang, 2017), and job distribution (Yue, Yue, & Zhang, 2016).…”