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A Meta-Analysis Of The Estimates Of Returns To Schooling In China

Author

Listed:
  • Elaine Liu

    () (University of Houston)

  • Shu Zhang

    (University of Houston)

Abstract

This paper performs a meta-analysis to investigate how changes over time, model specifications, differences in data sets, and variable definitions could contribute to the differences in estimates of returns to education in China. The results show that approximately 10 percent of the variation can be explained by changes in labor market over time, while the other 45 percent can be explained by differences in samples used and empirical methods. Return to education has increased approximately 0.2 percentage points a year since the economic reform, and increases more quickly as the reform progresses; however, this accelerating trend has reached a stop in the last few years when the global recession hit China. We also find that returns to education for rural-to-urban migrant workers are 2.3 percentage points lower than that of urban workers. We conclude that the increasing reward for human capital accumulation over time signals that China is moving toward a well functioning labor market.

Suggested Citation

  • Elaine Liu & Shu Zhang, 2013. "A Meta-Analysis Of The Estimates Of Returns To Schooling In China," Working Papers 201309855, Department of Economics, University of Houston.
  • Handle: RePEc:hou:wpaper:201309855
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    File URL: http://www.uh.edu/econpapers/RePEc/hou/wpaper/201309855.pdf
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    References listed on IDEAS

    as
    1. Margaret Maurer-Fazio & Ngan Dinh, 2004. "Differential rewards to, and contributions of, education in urban China's segmented labor markets," Pacific Economic Review, Wiley Blackwell, vol. 9(3), pages 173-189, October.
    2. 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.
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    Cited by:

    1. Dai, Fengyan & Cai, Fang & Zhu, Yu, 2018. "Returns to Higher Education in China: Evidence from the 1999 Higher Education Expansion Using Fuzzy Regression Discontinuity," IZA Discussion Papers 11735, Institute for the Study of Labor (IZA).
    2. Hu, Feng, 2015. "Return to Education for China’s Return Migrant Entrepreneurs," World Development, Elsevier, vol. 72(C), pages 296-307.

    More about this item

    Keywords

    Returns to Education; China; Meta-Analysis;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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