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Returns to higher education subjects and tiers in China - Evidence from the China Family Panel Studies

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  • Kang, Lili
  • Peng, Fei
  • Zhu, Yu

Abstract

Using the recent China Family Panel Studies, we are able to identify the subjects studied of both college (2-3 years) graduates and university (4-5 years) graduates. For the latter group, we can further distinguish universities by the tier of selectivity (i.e. Key and Ordinary Universities). We take advantage of the rich information on the respondent’s school cohort and hukou status at age 12 and the mother’s age and education to estimate the simultaneous choice of subject and tier of prestige of higher education institutions (HEI) faced by university applicants. Using the doubly robust Inverse Probability Weighted Regression Adjustment (IPWRA) method to account for selection (on observables) into subjects and tiers, our treatment effect estimates suggest that OLS substantially underestimate the effect of attending more prestigious universities, for graduates of both genders in Law, Economics and Management (LEM). We also show that the recent massive expansion of the higher education sector have reduced returns to HE for all graduates, except for those studying LEM or Other non-STEM subjects at the most prestigious universities. Our results are robust to treating subjects as predetermined for the selection into HEIs by tiers of prestige.

Suggested Citation

  • Kang, Lili & Peng, Fei & Zhu, Yu, 2018. "Returns to higher education subjects and tiers in China - Evidence from the China Family Panel Studies," GLO Discussion Paper Series 238, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:238
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    Cited by:

    1. Huang, Bin & Zhu, Yu, 2020. "Higher Education Expansion, the Hukou System, and Returns to Education in China," IZA Discussion Papers 12954, Institute of Labor Economics (IZA).
    2. Huang, Bin & Tani, Massimiliano & Wei, Yi & Zhu, Yu, 2022. "Returns to education in China: Evidence from the great higher education expansion," China Economic Review, Elsevier, vol. 74(C).
    3. Gu, Xiang & Hua, Sheng & McKenzie, Tom & Zheng, Yanqiao, 2022. "Like father, like son? Parental input, access to higher education, and social mobility in China," China Economic Review, Elsevier, vol. 72(C).
    4. Yanqiao Zheng & Xiaoqi Zhang & Qiwen Dai & Xing Zhang, 2020. "To Float or Not to Float? Internal Migration of Skilled Laborers in China," IJERPH, MDPI, vol. 17(23), pages 1-15, December.
    5. Sylvie Démurger & Eric A. Hanushek & Lei Zhang, 2019. "Employer Learning and the Dynamics of Returns to Universities: Evidence from Chinese Elite Education during University Expansion," NBER Working Papers 25955, National Bureau of Economic Research, Inc.
    6. Ogundari, Kolawole, 2021. "A systematic review of statistical methods for estimating an education production function," MPRA Paper 105283, University Library of Munich, Germany.
    7. Zheng, Yanqiao & Zhang, Xiaoqi & Zhu, Yu, 2021. "Overeducation, major mismatch, and return to higher education tiers: Evidence from novel data source of a major online recruitment platform in China," China Economic Review, Elsevier, vol. 66(C).

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    More about this item

    Keywords

    Returns to university tier and subjects; China; Inverse Probability Weighted Regression Adjustment; Higher Education expansion;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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