Determinants of schooling returns during transition: Evidence from Chinese cities

This paper uses 1988 and 1995 data from a national household survey to study across-region dispersions and changes over time in returns to education for a large number of Chinese cities and to analyze the determinants of schooling returns during economic transition. On average, the estimated rates o...

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Bibliographic Details
Published in:Journal of Comparative Economics 2005-06, Vol.33 (2), p.244-264
Main Author: Yang, Dennis Tao
Format: Article
Language:English
Subjects:
China
Cities
Data analysis
Economic development
Education systems
Empirical research
Human capital
Labour market structure
Returns to education
Urban studies
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Summary:This paper uses 1988 and 1995 data from a national household survey to study across-region dispersions and changes over time in returns to education for a large number of Chinese cities and to analyze the determinants of schooling returns during economic transition. On average, the estimated rates of return at the city level increased from 3.1 to 5.1% between these two years and the dispersion widened significantly. During the same period, the gender earnings gap increased and the returns to experience and Communist membership rose sharply. Individual cross section and city-level panel data suggest that the presence of foreign and joint-venture firms, market job search channels, and information infrastructure contributed to increased returns to education. However, the size of the state sector constrained schooling returns. Journal of Comparative Economics 33 (2) (2005) 244–264.
ISSN:0147-5967
1095-7227
DOI:10.1016/j.jce.2005.03.010