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The Returns to Education: An Empirical Study of Urban China, 1988-2007

Faigen, Benjamin Samuel LU (2012) EKHR81 20121
Department of Economic History
Abstract
This paper uses data from a recently-released survey pertaining to individuals in urban locations in 2007 to estimate rates of return to education in China. In doing so, previous estimates in the empirical literature are updated by five years. The key issue under consideration is whether the private incentive to spend time and money on education has increased over the course of China’s economic transition, given the increased permeation of market forces in determining wages and a policy focus on improving educational quality. The mincer-type rate of return to education is estimated to be 9.6 percent in 2007; a return greater than in previous time periods but comparatively low by international standards. In addition, the completion of... (More)
This paper uses data from a recently-released survey pertaining to individuals in urban locations in 2007 to estimate rates of return to education in China. In doing so, previous estimates in the empirical literature are updated by five years. The key issue under consideration is whether the private incentive to spend time and money on education has increased over the course of China’s economic transition, given the increased permeation of market forces in determining wages and a policy focus on improving educational quality. The mincer-type rate of return to education is estimated to be 9.6 percent in 2007; a return greater than in previous time periods but comparatively low by international standards. In addition, the completion of university-schooling is found to be the most profitable out of all the educational attainment levels, whilst recently-completed education is of greatest value at the commencement stage of employment. (Less)
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author
Faigen, Benjamin Samuel LU
supervisor
organization
course
EKHR81 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
China., Labour Market, Mincer, Transition, Returns to Education
language
English
id
2798053
date added to LUP
2012-08-07 11:58:52
date last changed
2012-08-07 11:58:52
@misc{2798053,
  abstract     = {This paper uses data from a recently-released survey pertaining to individuals in urban locations in 2007 to estimate rates of return to education in China. In doing so, previous estimates in the empirical literature are updated by five years. The key issue under consideration is whether the private incentive to spend time and money on education has increased over the course of China’s economic transition, given the increased permeation of market forces in determining wages and a policy focus on improving educational quality. The mincer-type rate of return to education is estimated to be 9.6 percent in 2007; a return greater than in previous time periods but comparatively low by international standards. In addition, the completion of university-schooling is found to be the most profitable out of all the educational attainment levels, whilst recently-completed education is of greatest value at the commencement stage of employment.},
  author       = {Faigen, Benjamin Samuel},
  keyword      = {China.,Labour Market,Mincer,Transition,Returns to Education},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Returns to Education: An Empirical Study of Urban China, 1988-2007},
  year         = {2012},
}