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Does Education Still Pay Off in Rural China: Revisit the Impact of Education on Off‐farm Employment and Wages

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  • Haiqing Zhang
  • Linxiu Zhang
  • Renfu Luo
  • Qiang Li

Abstract

The present study considers how education affects off‐farm job participation and wages. We use a nationally representative dataset from a survey conducted in 5 provinces, 101 villages and 808 households by the authors in early 2005. The empirical results show that educational attainment, skill training and years of experience of rural residents have positive, statistically significant effects on off‐farm employment. The average return to a year of education is 7 percent, which is higher than those observed in previous studies. We also find the return to an additional year of schooling to be higher for post‐junior high schooling than for junior high and below schooling: 11.8 versus 3.2 percent. We conclude that not only does education still pays off in rural China, but also the rate of return to education is increasing over time.

Suggested Citation

  • Haiqing Zhang & Linxiu Zhang & Renfu Luo & Qiang Li, 2008. "Does Education Still Pay Off in Rural China: Revisit the Impact of Education on Off‐farm Employment and Wages," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(2), pages 50-65, March.
    • Handle: RePEc:bla:chinae:v:16:y:2008:i:2:p:50-65
    DOI: 10.1111/j.1749-124X.2008.00106.x
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    1. Ge, Suqin & Yang, Dennis Tao, 2011. "Labor market developments in China: A neoclassical view," China Economic Review, Elsevier, vol. 22(4), pages 611-625.
    2. Fangbin Qiao & Scott Rozelle & Linxiu Zhang & Yi Yao & Jian Zhang, 2015. "Impact of Childcare and Eldercare on Off-farm Activities in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(2), pages 100-120, March.
    3. Ichiro Iwasaki & Xinxin Ma, 2020. "Gender wage gap in China: a large meta-analysis," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-19, December.
    4. Yunli Bai & Weidong Wang & Linxiu Zhang, 2018. "How Long Do Return Migrants Stay in Their Home Counties? Trends and Causes," Sustainability, MDPI, vol. 10(11), pages 1-21, November.
    5. Sefa Awaworyi Churchill & Vinod Mishra, 2018. "Returns to education in China: a meta-analysis," Applied Economics, Taylor & Francis Journals, vol. 50(54), pages 5903-5919, November.
    6. Qi Sun & Chao Fu & Yunli Bai & Ayub M. O. Oduor & Baodong Cheng, 2023. "Livelihood Diversification and Residents’ Welfare: Evidence from Maasai Mara National Reserve," IJERPH, MDPI, vol. 20(5), pages 1-21, February.
    7. 岩﨑, 一郎 & Iwasaki, Ichiro & 馬, 欣欣 & Ma, Xin Xin, 2019. "現代中国における男女賃金格差: メタ分析による接近," Discussion Paper Series 689, Institute of Economic Research, Hitotsubashi University.
    8. Wang, W., 2018. "Wage premium, functioning labor markets, and the role of education: Evidence from rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276942, International Association of Agricultural Economists.
    9. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender Wage Gap in China: A Large Meta-Analysis," CEI Research Paper Series 2020-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    10. Weidong Wang & Yongqing Dong & Yunli Bai & Renfu Luo & Linxiu Zhang & Chengfang Liu & Spencer Hagist, 2020. "Returns to Education in Different Job Locations for Off-Farm Wage Employment: Evidence from China," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    11. Qiuyi Huang & Xiaoping Zheng & Ruimei Wang, 2022. "The Impact of the Accessibility of Transportation Infrastructure on the Non-Farm Employment Choices of Rural Laborers: Empirical Analysis Based on China’s Micro Data," Land, MDPI, vol. 11(6), pages 1-15, June.
    12. Qi Sun & Yunli Bai & Chao Fu & Xiangbo Xu & Mingxing Sun & Baodong Cheng & Linxiu Zhang, 2022. "Heterogeneous Effects of Skill Training on Rural Livelihoods around Four Biosphere Reserves in China," IJERPH, MDPI, vol. 19(18), pages 1-22, September.
    13. Hou, Linke & Wang, Xiaobing & Yu, Xiaohua, 2011. "Rational Expectation and Education Rewarding: The Case of Chinese Off-Farm Wage Employment," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114530, European Association of Agricultural Economists.
    14. Braga, Cicero & Neves, Mateus & Costa, Lorena, 2021. "Off-Farm Work and Income Inequality in Rural Brazil," 2021 Conference, August 17-31, 2021, Virtual 314994, International Association of Agricultural Economists.

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