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Employment, Emerging Labor Markets, and the Role of Education in Rural China

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  • Scott Rozelle

    (Stanford University)

  • Liniux Zhang

    (Stanford University)

  • Jikun Huang

    (Center for Chinese Agricultural Policy, Chinese Academy of Science)

Abstract

The overall goal of this paper is to contribute to the ongoing assessment of\r\nChina’s rural labor markets. To meet this goal, we have three specific objectives. First,\r\nwe will provide an update of the trends in off-farm labor participation and wages of the\r\nsample households and examine how labor market outcomes have changed for those with\r\ndifferent levels of education. Second, we will then seek to examine if education in\r\ndifferent time periods – the late 1980s, the early 1990s and the mid 1990s -- can be\r\nassociated with increasing access to off-farm jobs. Finally, we will examine how returns\r\nto education have changed during the course of the reform era. In short, our hypotheses\r\nare that if labor markets are increasingly rewarding those with a.) better education job\r\naccess; b.) easier entry; and c.) higher wages, such outcomes will count as evidence that\r\nlabor markets are improving. Both the descriptive data and the multivariate analysis\r\nrobustly support the findings that between the late 1980s and the mid-1990s, labor\r\nmarkets have improved in the sense that rural workers have been increasingly rewarded\r\nfor their education.

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Paper provided by Rural Education Action Project at Stanford University in its series REAP Papers with number 22568.

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Publication status: Published in China Economic Review
Handle: RePEc:fsi:wpaper:22568

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  1. Zhu, Nong, 2002. "The impacts of income gaps on migration decisions in China," China Economic Review, Elsevier, vol. 13(2-3), pages 213-230.
  2. Cai, Fang & Wang, Dewen & Du, Yang, 2002. "Regional disparity and economic growth in China: The impact of labor market distortions," China Economic Review, Elsevier, vol. 13(2-3), pages 197-212.
  3. Liu, Shouying & Carter, Michael R. & Yao, Yang, 1998. "Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform," World Development, Elsevier, vol. 26(10), pages 1789-1806, October.
  4. Benjamin, Dwayne & Brandt, Loren, 1997. "Land, Factor Markets, and Inequality in Rural China: Historical Evidence," Explorations in Economic History, Elsevier, vol. 34(4), pages 460-494, October.
  5. William L. Parish & Xiaoye Zhe & Fang Li, . "Nonfarm Work and Marketization of the Chinese Countryside," University of Chicago - Population Research Center 95-6, Chicago - Population Research Center.
  6. Yang, Dennis T. & Hao Zhou, 1997. "Rural-Urban Disparity and Sectoral Labor Allocation in China," Working Papers 97-02, Duke University, Department of Economics.
  7. Maurer-Fazio, Margaret, 1999. "Earnings and education in China's transition to a market economy Survey evidence from 1989 and 1992," China Economic Review, Elsevier, vol. 10(1), pages 17-40.
  8. Shahid Yusuf, 1994. "China's Macroeconomic Performance and Management during Transition," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 71-92, Spring.
  9. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution Of China'S Rural Labor Markets During The Reforms," Working Papers 11984, University of California, Davis, Department of Agricultural and Resource Economics.
  10. Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2002. "Labor retrenchment in China: Determinants and consequences," China Economic Review, Elsevier, vol. 13(2-3), pages 252-275.
  11. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  12. meng, xin, 1995. "The role of education in wage determination in China's rural industrial sector," MPRA Paper 1343, University Library of Munich, Germany.
  13. Samuel P.S. Ho & Xiao-Yuan Dong & Paul Bowles & Fiona MacPhail, 2002. "Privatization and enterprise wage structures during transition: Evidence from rural industry in china," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(3), pages 659-688, November.
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