IDEAS home Printed from https://ideas.repec.org/p/uwo/uwowop/202212.html
   My bibliography  Save this paper

The Big Expansion of Rural Secondary Schooling during the Cultural Revolution and The Returns to Education in Rural China

Author

Abstract

During the Cultural Revolution China embarked on a dramatic, albeit temporary, expansion of secondary education in rural areas that affected tens of millions of children who reached secondary school age in the late 1960s and 1970s. The conventional wisdom is that this expansion was politicized and low quality. Using instrumental variables estimation, we exploit variation in the expansion across localities and birth cohorts to estimate the impact of Cultural Revolution education on individual outcomes. Creative use of historical county-level information matched with rich household survey data from the mid-1990s allows analysis of multiple outcomes. We find a significant, positive effect of Cultural Revolution years of education on off-farm employment and wage earnings. The effect on household income is mixed and likely reflects the substitution of market purchases for own production.

Suggested Citation

  • Terry Sicular & Mengbing Zhu, 2022. "The Big Expansion of Rural Secondary Schooling during the Cultural Revolution and The Returns to Education in Rural China," University of Western Ontario, Departmental Research Report Series 202212, University of Western Ontario, Department of Economics.
    • Handle: RePEc:uwo:uwowop:202212
    as

    Download full text from publisher

    File URL: https://ir.lib.uwo.ca/cgi/viewcontent.cgi?article=1854&context=economicsresrpt
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 695-709, December.
    2. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
    3. Azizur Rahman Khan & Keith Griffin & Carl Riskin & Zhao Renwei, 1993. "Household Income and its Distribution in China," Palgrave Macmillan Books, in: Keith Griffin & Zhao Renwei (ed.), The Distribution of Income in China, chapter 1, pages 25-73, Palgrave Macmillan.
    4. Zhang, Junsen & Liu, Pak-Wai & Yung, Linda, 2007. "The Cultural Revolution and returns to schooling in China: Estimates based on twins," Journal of Development Economics, Elsevier, vol. 84(2), pages 631-639, November.
    5. Colm Harmon; & Ian Walker, 1995. "Estimates of Economic Return to Schooling in the UK," Economics Department Working Paper Series n540195, Department of Economics, National University of Ireland - Maynooth.
    6. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    7. Shuang Zhang, 2018. "Effects of High School Closure on Education and Labor Market Outcomes in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 67(1), pages 171-191.
    8. Yang, Dennis Tao, 1997. "Education and Off-Farm Work," Economic Development and Cultural Change, University of Chicago Press, vol. 45(3), pages 613-632, April.
    9. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    10. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    11. John Knight & Li Shi & Deng Quheng, 2010. "Education and the Poverty Trap in Rural China: Closing the Trap," Oxford Development Studies, Taylor & Francis Journals, vol. 38(1), pages 1-24.
    12. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    13. Philip Oreopoulos, 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter," American Economic Review, American Economic Association, vol. 96(1), pages 152-175, March.
    14. Qihui Chen & Jingqin Xu & Jiaqi Zhao & Bo Zhang, 2017. "Endogenous schooling, school proximity and returns to rural schooling in Northwestern China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 9(2), pages 270-286, May.
    15. Meng, Xin & Gregory, R G, 2002. "The Impact of Interrupted Education on Subsequent Educational Attainment: A Cost of the Chinese Cultural Revolution," Economic Development and Cultural Change, University of Chicago Press, vol. 50(4), pages 935-959, July.
    16. Li,Shi & Sato,Hiroshi & Sicular,Terry (ed.), 2013. "Rising Inequality in China," Cambridge Books, Cambridge University Press, number 9781107002913.
    17. Devereux, Paul J. & Fan, Wen, 2011. "Earnings returns to the British education expansion," Economics of Education Review, Elsevier, vol. 30(6), pages 1153-1166.
    18. Harmon, Harmon & Ian Walker, 1995. "Estimates of the economic return to schooling for the UK," IFS Working Papers W95/12, Institute for Fiscal Studies.
    19. Meng, Xin & Gregory, Bob, 2007. "Exploring the Impact of Interrupted Education on Earnings: The Educational Cost of the Chinese Cultural Revolution," IZA Discussion Papers 2548, Institute of Labor Economics (IZA).
    20. Xin Meng & Nancy Qian, 2009. "The Long Term Consequences of Famine on Survivors: Evidence from a Unique Natural Experiment using China's Great Famine," NBER Working Papers 14917, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Terry Sicular & Juan Yang, 2015. "The Returns to Schooling in Rural China: Evidence from the Cultural Revolution Education Expansion," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20152, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    2. Chen, Yi & Jiang, Sheng & Zhou, Li-An, 2020. "Estimating returns to education in urban China: Evidence from a natural experiment in schooling reform," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 218-233.
    3. Nikolov, Plamen & Jimi, Nusrat & Chang, Jerray, 2020. "The Importance of Cognitive Domains and the Returns to Schooling in South Africa: Evidence from Two Labor Surveys," Labour Economics, Elsevier, vol. 65(C).
    4. John Giles & Albert Park & Meiyan Wang, 2019. "The Great Proletarian Cultural Revolution, Disruptions to Education, and the Returns to Schooling in Urban China," Economic Development and Cultural Change, University of Chicago Press, vol. 68(1), pages 131-164.
    5. Assaad, Ragui & Aydemir, Abdurrahman B. & Dayioglu-Tayfur, Meltem & Kirdar, Murat Güray, 2023. "Wage Returns to Human Capital Resulting from an Extra Year of Primary School: Evidence from Egypt," IZA Discussion Papers 16037, Institute of Labor Economics (IZA).
    6. Ragui Assaad & Abdurrahman Aydemir & Meltem Dayioglu & Guray Kirdar, 2016. "Returns to Schooling in Egypt," Working Papers 1000, Economic Research Forum, revised May 2016.
    7. Devereux, Paul J. & Fan, Wen, 2011. "Earnings returns to the British education expansion," Economics of Education Review, Elsevier, vol. 30(6), pages 1153-1166.
    8. Karlis Vilerts & Olegs Krasnopjorovs & Edgars Brekis, 2015. "Does Education Affect Wages During and After Economic Crisis? Evidence from Latvia (2006–2012)," Working Papers 2015/03, Latvijas Banka.
    9. Abdurrahman Aydemir & Murat G. Kirdar, 2017. "Low Wage Returns to Schooling in a Developing Country: Evidence from a Major Policy Reform in Turkey," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(6), pages 1046-1086, December.
    10. Peet, Evan D. & Fink, Günther & Fawzi, Wafaie, 2015. "Returns to education in developing countries: Evidence from the living standards and measurement study surveys," Economics of Education Review, Elsevier, vol. 49(C), pages 69-90.
    11. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany – Heterogeneous Eff ects and Skill Formation," Ruhr Economic Papers 0446, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany: Heterogeneous Effects and Skill Formation," SOEPpapers on Multidisciplinary Panel Data Research 598, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    14. Ge, Suqin, 2013. "Estimating the returns to schooling: Implications from a dynamic discrete choice model," Labour Economics, Elsevier, vol. 20(C), pages 92-105.
    15. Denis Maguain, 2007. "Les rendements de l'éducation en comparaison internationale," Économie et Prévision, Programme National Persée, vol. 180(4), pages 87-106.
    16. Plamen Nikolov & Nusrat Jimi, 2018. "What factors drive individual misperceptions of the returns to schooling in Tanzania? Some lessons for education policy," Applied Economics, Taylor & Francis Journals, vol. 50(44), pages 4705-4723, September.
    17. Dr Mohammad Rafiqul Islam & Dr Nicholas Sim, 2021. "Education and Food Consumption Patterns: Quasi-Experimental Evidence from Indonesia," Papers 2109.08124, arXiv.org.
    18. repec:zbw:rwirep:0446 is not listed on IDEAS
    19. Lång, Elisabeth & Nystedt, Paul, 2016. "Learning For Life? The Effects of Schooling on Earnings and Health- Related Behavior Over the Life Cycle," LiU Working Papers in Economics 4, Linköping University, Division of Economics, Department of Management and Engineering.
    20. Lindeboom, Maarten & Llena-Nozal, Ana & van der Klaauw, Bas, 2009. "Parental education and child health: Evidence from a schooling reform," Journal of Health Economics, Elsevier, vol. 28(1), pages 109-131, January.
    21. Daniel Gray & Alberto Montagnoli & Mirko Moro, 2017. "Does education improve financial outcomes? Quasi-experimental evidence from Britain," Working Papers 2017010, The University of Sheffield, Department of Economics.

    More about this item

    Keywords

    Education expansion; secondary education; returns to schooling; rural China; Cultural Revolution;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwo:uwowop:202212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://economics.uwo.ca/research/research_papers/department_working_papers.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.