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Education and Earnings in Rural China

Author

Listed:
  • Xin Wei
  • Mun Tsang
  • Weibin Xu
  • Liang-Kun Chen

Abstract

This is a study of education and earnings in rural China, based on data for 3709 residents from 23 counties in six provinces of central and southwestern regions in 1991. It found that education was singnificantly and positively related to earnings; an additional year of schooling raised the earnings of rural resindents by 4.8 yuan per month. The earnings effect on education was stronger for males than for females. The education and earnings relationship was also stronger in economic sectors with more market-oriented reform; and economic returns tended to be higher in economically more advanced provinces and regions. According to the Mincerian method, the average private rate of return to education was 4.8%. The Mincerian rates were similar for males and females, but were higher for ecnonmically more advanced provinces and regions. According to the elaborate method, the unadjusted private rate of return was 9.0% for promary educaion and 11.2%for lower-secondary education. Thus, investment in compulsory education in poor rural areas in China was quite profitable for the individual and could also be profitable from the perspective of society.

Suggested Citation

  • Xin Wei & Mun Tsang & Weibin Xu & Liang-Kun Chen, 1999. "Education and Earnings in Rural China," Education Economics, Taylor & Francis Journals, vol. 7(2), pages 167-187.
    • Handle: RePEc:taf:edecon:v:7:y:1999:i:2:p:167-187
    DOI: 10.1080/09645299900000014
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    References listed on IDEAS

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    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    3. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
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    1. Chad Meyerhoefer & C. Chen, 2011. "The effect of parental labor migration on children’s educational progress in rural china," Review of Economics of the Household, Springer, vol. 9(3), pages 379-396, September.
    2. Phanhpakit ONPHANHDALA & Terukazu SURUGA, 2006. "Education and Earnings in Lao PDR: Regional and Gender Differences," GSICS Working Paper Series 4, Graduate School of International Cooperation Studies, Kobe University.
    3. M Niaz Asadullah & Saizi Xiao, 2019. "Labor Market Returns to Education and English Language Skills in the People's Republic of China: An Update," Asian Development Review, MIT Press, vol. 36(1), pages 80-111, March.
    4. Hongyun Han, 2010. "Trends in educational assortative marriage in China from 1970 to 2000," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(24), pages 733-770.
    5. Hongmei Yi & Linxiu Zhang & Chengfang Liu & James Chu & Prashant Loyalka & May Maani & Jianguo Wei, 2013. "How Are Secondary Vocational Schools in China Measuring up to Government Benchmarks?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(3), pages 98-120, May.
    6. Emran, M. Shahe & Sun, Yan, 2014. "Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China," MPRA Paper 59230, University Library of Munich, Germany.
    7. Aakanksha & Narendra Kumar Bishnoi, 2024. "Education and earnings: examining the returns across regular, casual, and self-employed labour markets," SN Business & Economics, Springer, vol. 4(6), pages 1-21, June.

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