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Parental Education and Wages: Evidence from China

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Author Info
Chen, Yuanyuan (Shanghai University of Finance and Economics)
Feng, Shuaizhang () (Princeton University)
Abstract

Using nationally representative data in China, we find substantial positive partial correlations of both parents' education with one's wage. In addition, returns to father's education are higher in more monopsonistic and less meritocratic labor markets, including non-coastal regions, the state-owned sector, and the early periods of the reform era. The opposite is, however, true with respect to mother's education. Overall, the empirical evidence is consistent with the story that father's education mainly indicates family connections useful for locating a better-paying first job, while mother's education primarily captures unmeasured ability.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4218.

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Length: 39 pages
Date of creation: Jun 2009
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Handle: RePEc:iza:izadps:dp4218

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Related research
Keywords: parental education; wages; family connections; unmeasured ability;

Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

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