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Does vocational education pay off in China? Instrumental-variable quantile-regression evidence

Author

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  • Li Dai

    (School of Business and Management, Queen Mary University of London.)

  • Pedro S. Martins

    (School of Business and Management, Queen Mary University of London.)

Abstract

As China's economy evolves, vocational education may become more important.In this paper, we study the returns to secondary vocational education in China and their differences along the wage distribution. We also use instrumental variables, based on geographical and longitudinal changes in academic and vocational enrolment opportunities, to address the selection between the two types of education. We find that vocational education provides a wage premium vis-a-vis academic education of over 30% but only for individuals at the middle of the conditional wage distribution.

Suggested Citation

  • Li Dai & Pedro S. Martins, 2020. "Does vocational education pay off in China? Instrumental-variable quantile-regression evidence," Working Papers 100, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    • Handle: RePEc:cgs:wpaper:100
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    Cited by:

    1. Jie Chen & Francesco Pastore, 2024. "Dynamics of returns to vocational education in China: 2010–2017," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    2. Chen, Jie & Pastore, Francesco, 2021. "Does Vocational Education Pay Better, or Worse, Than Academic Education?," IZA Discussion Papers 14445, Institute of Labor Economics (IZA).
    3. Joop Hartog & Pedro Raposo & Hugo Reis, 2022. "Fluctuations in the wage gap between vocational and general secondary education: lessons from Portugal," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 643-675, April.
    4. Dai, Li & Martins, Pedro S., 2024. "The Wage Effects of Polytechnic Degrees: Evidence from the 1999 China Higher Education Expansion," GLO Discussion Paper Series 1399, Global Labor Organization (GLO).
    5. Chen, Jie & Pastore, Francesco, 2021. ""Study Hard and Make Progress Every Day": Updates on Returns to Education in China," IZA Discussion Papers 14139, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    return to education; vocational education; instrumental variables; quantile treatment effects.;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • 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
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

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