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Heterogeneous Returns to Education across Hukou-Migration Subgroups in China

Author

Listed:
  • Juan Huang
  • Weerachart Kilenthong

Abstract

This paper uses the China Household Income Project 2018 dataset to estimate returns to education for various Hukou-migration subgroups. We overcome the endogeneity problem of years of schooling using an instrument based on the Great Expansion of Higher Education policy. Our results indicate that the highest returns are for urban native workers (27.4%), followed by urban Hukou-converted (25.0%) and rural native workers (14.7%). In contrast, the returns to education for rural-urban migrant workers are insignificant. Further analyses suggest that Hukou conversion significantly increased the returns to education for rural-origin people by enabling them access to better job opportunities.

Suggested Citation

  • Juan Huang & Weerachart Kilenthong, 2023. "Heterogeneous Returns to Education across Hukou-Migration Subgroups in China," PIER Discussion Papers 210, Puey Ungphakorn Institute for Economic Research.
  • Handle: RePEc:pui:dpaper:210
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    More about this item

    Keywords

    returns to education; Hukou system; migration; China;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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