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

  • Elaine Liu

    ()

    (University of Houston)

  • Shu Zhang

    (University of Houston)

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.

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File URL: http://www.uh.edu/econpapers/RePEc/hou/wpaper/201309855.pdf
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Paper provided by Department of Economics, University of Houston in its series Working Papers with number 201309855.

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Date of creation: 08 Apr 2013
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Handle: RePEc:hou:wpaper:201309855
Contact details of provider: Postal: Houston TX 77023
Web page: http://www.uh.edu/class/economics/

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  1. 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.
  2. Margaret Maurer-Fazio & Ngan Dinh, 2002. "Differential Rewards to, and Contributions of, Education in Urban China’s Segmented Labor Markets," William Davidson Institute Working Papers Series 508, William Davidson Institute at the University of Michigan.
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