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Education expansion and returns to schooling in urban China, 2001–2010: evidence from three waves of the China Urban Labor Survey

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  • Wenshu Gao
  • Russell Smyth

Abstract

This study examines the effect of the expansion in education that occurred in the first decade of the twenty-first century on the returns to schooling in urban China for migrants and non-migrants using three waves of the China Urban Labor Survey (CULS), corresponding to 2001, 2005 and 2010. Our main finding is that the premium to education increased by about 2%–3% over a period in which there was a rapid increase in education levels. This result is consistent with the demand for skilled labor increasing at a time when China tries to move up the value-added chain and an observed increase in urban wage inequality. We find that the education premium is higher for non-migrants than migrants and higher for males than females.

Suggested Citation

  • Wenshu Gao & Russell Smyth, 2015. "Education expansion and returns to schooling in urban China, 2001–2010: evidence from three waves of the China Urban Labor Survey," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(2), pages 178-201, April.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:2:p:178-201
    DOI: 10.1080/13547860.2014.970607
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    References listed on IDEAS

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    1. 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.
    2. 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.
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