IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Siblings, public facilities and education returns in China

  • Kang, Lili
  • Peng, Fei

This paper investigates the intrahousehold resource allocation on children’s education and its earnings consequence in Chinese labour market. In order to overcome the endogeneity problem of schooling, we consider the siblings structure and the available public facilities as instrumental variables. Females’ education is negatively affected by siblings (brothers or sisters) number, while males’ education is also negatively affected by their brothers but much less by their sisters. For the youngest cohort born after 1980, the education of a girl would be heavily impeded by her sisters, reflecting strong distortion of “One-Child Policy” on intrahousehold resource allocation. Comparing the OLS and GIV estimations for returns to schooling, we find that there are downwards biases of OLS estimations for males in all cohorts and in all years. However, for females, downwards biases of OLS estimation are only for data before 2004, as females in the old cohorts actually have upwards biases after 2004. Education returns of the youngest cohort are much higher than old cohorts supporting the argument of heterogeneous human capital accumulation during transition.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://mpra.ub.uni-muenchen.de/38922/3/MPRA_paper_38922.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38922.

as
in new window

Length:
Date of creation: May 2012
Date of revision:
Handle: RePEc:pra:mprapa:38922
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Belton M. Fleisher & Xiaojun Wang, 2004. "Returns to Schooling in China Under Planning and Reform," William Davidson Institute Working Papers Series 2004-704, William Davidson Institute at the University of Michigan.
  2. Fleisher, Belton M. & Li, Haizheng & Zhao, Min Qiang, 2008. "Human Capital, Economic Growth, and Regional Inequality in China," IZA Discussion Papers 3576, Institute for the Study of Labor (IZA).
  3. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  4. Pal, Sarmistha, 2009. "Public Infrastructure, Location of Private Schools and Primary School Attainment in an Emerging Economy," IZA Discussion Papers 4572, Institute for the Study of Labor (IZA).
  5. Flabbi, Luca & Paternostro, Stefano & Tiongson, Erwin R., 2008. "Returns to education in the economic transition: A systematic assessment using comparable data," Economics of Education Review, Elsevier, vol. 27(6), pages 724-740, December.
  6. Seguino, Stephanie & Grown, Caren, 2006. "Gender equity and globalization: Macroeconomic policy for developing countries," MPRA Paper 6540, University Library of Munich, Germany.
  7. Björn Gustafsson & Shi Li, 2000. "Economic transformation and the gender earnings gap in urban China," Journal of Population Economics, Springer, vol. 13(2), pages 305-329.
  8. Li, Wenli, 2007. "Family background, financial constraints and higher education attendance in China," Economics of Education Review, Elsevier, vol. 26(6), pages 724-734, December.
  9. Maimaiti, Yasheng & Siebert, W. Stanley, 2009. "The Gender Education Gap in China: The Power of Water," IZA Discussion Papers 4108, Institute for the Study of Labor (IZA).
  10. Philippe Belley & Lance Lochner, 2007. "The Changing Role of Family Income and Ability in Determining Educational Achievement," NBER Working Papers 13527, National Bureau of Economic Research, Inc.
  11. CHEN, Guifu & HAMORI, Shigeyuki, 2009. "Economic returns to schooling in urban China: OLS and the instrumental variables approach," China Economic Review, Elsevier, vol. 20(2), pages 143-152, June.
  12. Lixing Li & Xiaoyu Wu, 2011. "Gender of Children, Bargaining Power, and Intrahousehold Resource Allocation in China," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 295-316.
  13. Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November.
  14. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
  15. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512.
  16. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Children's Education," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 669-700, May.
  17. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  18. Von Braun, Joachim, 1988. "Effects of technological change in agriculture on food consumption and nutrition: Rice in a West African setting," World Development, Elsevier, vol. 16(9), pages 1083-1098, September.
  19. Silles, Mary A., 2010. "The implications of family size and birth order for test scores and behavioral development," Economics of Education Review, Elsevier, vol. 29(5), pages 795-803, October.
  20. Nancy Qian, 2008. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," The Quarterly Journal of Economics, MIT Press, vol. 123(3), pages 1251-1285, August.
  21. Edlund, Lena & Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2007. "Sex Ratios and Crime: Evidence from China’s One-Child Policy," IZA Discussion Papers 3214, Institute for the Study of Labor (IZA).
  22. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc.
  23. Kang, Lili & Peng, Fei, 2011. "A selection analysis on education returns in China," MPRA Paper 38704, University Library of Munich, Germany.
  24. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, 04.
  25. Meng, Xin & Kidd, Michael P., 1997. "Labor Market Reform and the Changing Structure of Wage Determination in China's State Sector during the 1980s," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 403-421, December.
  26. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(02), pages 222-240, April.
  27. Xin Meng & Junsen Zhang & Pak-Wai Liu, 2000. "Sectoral gender wage differentials and discrimination in the transitional Chinese economy," Journal of Population Economics, Springer, vol. 13(2), pages 331-352.
  28. Emily Oster & Rebecca Thornton, 2011. "Menstruation, Sanitary Products, and School Attendance: Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 91-100, January.
  29. Haizheng Li & Yi Luo, 2004. "Reporting errors, ability heterogeneity, and returns to schooling in China," Pacific Economic Review, Wiley Blackwell, vol. 9(3), pages 191-207, October.
  30. Colm Harmon & Ian Walker & Niels Westergaard-Nielsen, 2001. "Introduction [to Education and earnings in Europe : a cross country analysis of the returns to education]," Open Access publications 10197/757, School of Economics, University College Dublin.
  31. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S143-62, August.
  32. Harmon, Colm & Walker, Ian, 2000. "The Returns to the Quantity and Quality of Education: Evidence for Men in England and Wales," Economica, London School of Economics and Political Science, vol. 67(265), pages 19-35, February.
  33. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  34. Uusitalo, Roope, 1999. "Return to education in Finland," Labour Economics, Elsevier, vol. 6(4), pages 569-580, November.
  35. Zhang, Junsen & Zhao, Yaohui & Park, Albert & Song, Xiaoqing, 2005. "Economic returns to schooling in urban China, 1988 to 2001," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 730-752, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38922. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.