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Reconciling the Returns to Education in Off-Farm Wage Employment in Rural China

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Author Info
Alan de Brauw
Scott Rozelle

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Abstract

Previous studies have found that the returns to education in rural China are far lower than estimates for other developing economies. In this paper, we seek to determine why previous estimates are so low and provide estimates of what we believe are more accurate measures of the returns. Whereas estimates for the early 1990s average 2.3 percent, we find an average return of 6.4 percent. Furthermore, we find even higher returns among younger people, migrants, and for post-primary education. The paper demonstrates that, although part of the difference between our estimate and previous estimates can be attributed to increasing returns during the 1990s, a larger part of the difference is due to the nature of the data and the methodological approaches used by other authors. Copyright © 2007 The Authors; Journal compilation © 2007 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2007.00376.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 12 (2008)
Issue (Month): 1 (02)
Pages: 57-71
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Handle: RePEc:bla:rdevec:v:12:y:2008:i:1:p:57-71

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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This page was last updated on 2008-8-12.

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