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Private returns to investment in education: an empirical study of urban China

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Author Info

  • Xiaolei Qian
  • Russell Smyth

Abstract

This article draws on a survey of urban Chinese workers in 2005 to estimate the private returns to education and the income elasticity of education. Differences in the rates of return to schooling are examined between gender and between age groups. The estimated returns to schooling are found to be higher than those documented in existing studies for the mid-1980s to late 1990s. In particular, considerably higher returns to education are observed among people aged 35 or under, representing those who received standardised education and entered the labour market during the urban economic reform era. The study finds that the income elasticity of education expenditure is relatively low and that expenditure on education is less sensitive to changes in income than expenditure on either food or clothing.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/14631370802444732
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 20 (2008)
Issue (Month): 4 ()
Pages: 483-501

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Handle: RePEc:taf:pocoec:v:20:y:2008:i:4:p:483-501

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Cited by:
  1. Tian Qiu & John Hudson, 2010. "Private returns to education in urban China," Economic Change and Restructuring, Springer, vol. 43(2), pages 131-150, May.
  2. Vinod Mishra & Russell Smyth, 2012. "It Pays to Be Happy (If You are a Man): Subjective Wellbeing and the Gender Wage Gap in Urban China," Monash Economics Working Papers 51-12, Monash University, Department of Economics.
  3. Zhong, Hai, 2011. "Returns to higher education in China: What is the role of college quality?," China Economic Review, Elsevier, vol. 22(2), pages 260-275, June.
  4. Kang, Lili & Peng, Fei, 2011. "A selection analysis on education returns in China," MPRA Paper 38704, University Library of Munich, Germany.
  5. Vinod Mishra & Russell Smyth, 2012. "Returns to Schooling in Urban China: New Evidence Using Heteroskedasticity Restrictions to Obtain Identification Without Exclusion Restrictions," Monash Economics Working Papers 33-12, Monash University, Department of Economics.
  6. Wenshu Gao & Russell Smyth, 2012. "Returns to Schooling in Urban China, 2001-2010: Evidence from Three Waves of the China Urban Labor Survey," Monash Economics Working Papers 50-12, Monash University, Department of Economics.

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