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The Impact of Higher Education Expansion Policy on the Wage of College Graduates in China

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  • Xinxin Ma

Abstract

Using a longitudinal survey data conducted from 1997 to 2011, this study employs an empirical study to provide evidence about the impact of the higher education expansion policy on the wage levels of college graduates in China. Major conclusions emerge. First, in general, the higher education expansion policy does not affect the wage level of young college graduates. Second, the difference of policy impact on wage by various wage percentiles is small. Third, the policy decreases the wage level of new college graduates in a short term and the negative effect disappears in a long term. Fourth, to consider the group heterogeneities of policy impacts, it is shown that both the differences between the Eastern, Central and Western Region groups and the gender gaps are small, whereas the policy impact differ by the urban and rural groups.

Suggested Citation

  • Xinxin Ma, 2019. "The Impact of Higher Education Expansion Policy on the Wage of College Graduates in China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(5), pages 1-68, May.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:5:p:68
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    References listed on IDEAS

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    1. Wenshu Gao & Russell Smyth, 2015. "Education expansion and returns to schooling in urban China, 2001–2010: evidence from three waves of the China Urban Labor Survey," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(2), pages 178-201, April.
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    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
    6. Shi Li & Xinxin Ma, 2015. "Impact of minimum wage on gender wage gaps in urban China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
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    Cited by:

    1. Yanming Li & Kangyin Lu & Kaiyuan Wang, 2021. "Inequality in the Initial Wage of College Graduates at the College-Level Perspective," Sustainability, MDPI, vol. 13(24), pages 1-15, December.
    2. Chien-Liang Chen & Lin-Chuan Chen, 2021. "The Impact of Higher Education Expansion on the Educational Wage Premium in Taiwan: 1985 to 2015," IJFS, MDPI, vol. 9(3), pages 1-12, July.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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