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Changes over time in the return to education in urban China: Conventional and ORU estimates

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  • Ren, Weiwei
  • Miller, Paul W.

Abstract

Studies of the return to education in urban China have reported that this has increased over time, and that females typically have a higher return than males. In this paper we adopt a framework provided by the over education/required education/under education literature, and the decomposition developed by Chiswick and Miller (2008), to investigate the reasons for these findings. The finding by Chen and Hamori (2009), from analysis of data for 2004 and 2006, of the return to schooling for males exceeding that for females, is also examined using this decomposition.

Suggested Citation

  • Ren, Weiwei & Miller, Paul W., 2012. "Changes over time in the return to education in urban China: Conventional and ORU estimates," China Economic Review, Elsevier, vol. 23(1), pages 154-169.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:1:p:154-169
    DOI: 10.1016/j.chieco.2011.08.008
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    References listed on IDEAS

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    1. Fleisher, Belton M. & Wang, Xiaojun, 2005. "Returns to schooling in China under planning and reform," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 265-277, June.
    2. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
    3. Chiswick, Barry R. & Miller, Paul W., 2008. "Why is the payoff to schooling smaller for immigrants?," Labour Economics, Elsevier, vol. 15(6), pages 1317-1340, December.
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    6. John Knight & Lina Song, 2003. "Increasing urban wage inequality in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 597-619, December.
    7. Chiswick, Barry R. & Miller, Paul W., 2010. "Does the choice of reference levels of education matter in the ORU earnings equation?," Economics of Education Review, Elsevier, vol. 29(6), pages 1076-1085, December.
    8. 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.
    9. Björn Gustafsson & Shi Li, 2000. "Economic transformation and the gender earnings gap in urban China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(2), pages 305-329.
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    11. Li, Haizheng, 2003. "Economic transition and returns to education in China," Economics of Education Review, Elsevier, vol. 22(3), pages 317-328, June.
    12. CHEN, Guifu & HAMORI, Shigeyuki, 2009. "Economic returns to schooling in urban China: OLS and the instrumental variables approach," China Economic Review, Elsevier, vol. 20(2), pages 143-152, June.
    13. Zhang, Junsen & Zhao, Yaohui & Park, Albert & Song, Xiaoqing, 2005. "Economic returns to schooling in urban China, 1988 to 2001," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 730-752, December.
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    Cited by:

    1. Vinod Mishra & Russell Smyth, 2014. "It pays to be happy (if you are a man): Subjective wellbeing and the gender wage gap in Urban China," International Journal of Manpower, Emerald Group Publishing, vol. 35(3), pages 392-414, May.
    2. Mishra, Vinod & Smyth, Russell, 2013. "Economic returns to schooling for China's Korean minority," Journal of Asian Economics, Elsevier, vol. 24(C), pages 89-102.
    3. Wenshu Gao & Russell Smyth, 2012. "Returns to Schooling in Urban China, 2001-2010: Evidence from Three Waves of the China Urban Labor Survey," Monash Economics Working Papers 50-12, Monash University, Department of Economics.
    4. repec:eee:joecag:v:8:y:2016:i:c:p:76-84 is not listed on IDEAS
    5. Pamela Lenton & Lu Yin, 2016. "The Educational Success of China’s Young Generation of Rural-to-Urban Migrants," Working Papers 2016007, The University of Sheffield, Department of Economics.
    6. Sefa Awaworyi & Vinod Mishra, 2014. "Returns to Education in China: A Meta-analysis," Monash Economics Working Papers 41-14, Monash University, Department of Economics.
    7. Castro Campos, Bente & Ren, Yanjun & Petrick, Martin, 2016. "The impact of education on income inequality between ethnic minorities and Han in China," China Economic Review, Elsevier, vol. 41(C), pages 253-267.

    More about this item

    Keywords

    China; Schooling; Earnings; Rates of return; Urban areas;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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