Human Resources in China: The Birth Quota, Returns to Schooling, and Migration
Rural elderly have 40% of the income of those in urban areas, spend a larger share of their income on food, are in worse health, work later into their lives, and depend more on their children, lacking pensions and public services. The birth quota since 1980 has particularly restricted the childbearing of rural less educated women, who now face retirement with fewer children for support. Inequality in China can also be traced to increasing returns to schooling, especially beyond secondary school. Government restrictions on rural-urban migration reduce national efficiency, add to the urban-rural wage gap, and increase inequality.
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