Economic Returns to Schooling for Chinaâ€™s Korean Minority
This paper examines economic returns to schooling for Chinaâ€™s Korean minority in the urban labour market using ordinary least squares (OLS) and two-stage least squares. The OLS estimates of the returns to schooling are similar to findings from recent studies for the Chinese urban labour market. We use fatherâ€™s education, motherâ€™s education and spouseâ€™s education to instrument for education. The two-stage least squares estimates are considerably higher than the OLS estimates for returns to schooling and slightly higher than existing two-stage least squares estimates of the returns to schooling for the Chinese urban labour market. The two stage least squares estimates of the returns to schooling for the Korean minority living in urban areas are high compared with the Asian average and world average. The economic returns to schooling reported in this study assists to explain why private demand for education among the Korean minority in China is strong and provides a justification for the Korean minorityâ€™s focus on educational attainment.
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