Excellent human capital or institution? Evidence from judicial reform of the judge quota system in China

Abstract

The recent major judicial reforms in China involve implementing a judge quota and personnel management system. To date, little is known about the impact of the reforms. Using over 14 million Chinese court judgments data from 2014 to 2018, this article evaluates the connections between qualified judges and labor specialization and judicial efficiency and quality. This study found that the judge quota reform in China has improved judicial efficiency and quality due mainly to the personnel classification management system rather than the reappointed judges. By introducing task-specific returns to specialization in the judicial system, the personnel classification management system has allowed judges to concentrate on their adjudicative tasks instead of administrative and secretarial duties and thereby improving judicial performance. Institution design plays an important role in optimizing resource allocation and improving efficiency. Implications for policy and future research are discussed.