Earnings Differentials and Returns to Education in China, 1995-2008

29 Pages Posted: 28 Apr 2013

See all articles by Yuling Cui

Yuling Cui

Macquarie University

Daehoon Nahm

Macquarie University - Department of Economics; Macquarie University, Macquarie Business School

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Abstract

This paper estimates the returns to education of rural-urban migrants during the period of transition of China's economy between 1995 and 2008. Using data from CHIP and RUMiC, we find that rural migrants' earning differentials with urban residents are substantial and mainly depend on the type of occupation, industry, and employers' ownership, rather than the level of education completed. Returns to formal schooling for migrants remained stable at approximately 3% and 5% throughout the period, and differences across quantiles are generally statistically insignificant. Increasing gaps in the return to schooling by gender have instead emerged. These results raise questions about the incentives to invest in human capital for rural migrants and for the governments funding education in emigration regions.

Keywords: returns to education, rural migrants, quantile regression, ownership enterprises, China, returns to schooling

JEL Classification: C31, J24, J61, O15

Suggested Citation

Cui, Yuling and Nahm, Daehoon and Tani, Massimiliano, Earnings Differentials and Returns to Education in China, 1995-2008. IZA Discussion Paper No. 7349, Available at SSRN: https://ssrn.com/abstract=2257199

Yuling Cui (Contact Author)

Macquarie University

Daehoon Nahm

Macquarie University - Department of Economics ( email )

Sydney NSW 2109
Australia

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

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Bonn, D-53072
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