Labor Market Emergence and Returns to Education in Rural China*

Li, Qiang; Brauw, Alan de; Rozelle, Scott; Zhang, Linxiu

doi:10.1111/j.1467-9353.2005.00238.x

Cited by 17 publications

(6 citation statements)

References 8 publications

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“…While this was a step in the right direction, the data some of these studies used were limited in that they were not nationally representative. Li et al (2005) investigated the returns to education and compared them to the same households in northern Jiangsu Province in 1988, 1992 and 1996. They showed that the returns to education have risen over time.…”

Section: Previous Studies Regarding Returns To Educationmentioning

confidence: 99%

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Changes in returns to education for off-farm wage employment: evidence from rural China

Wang

Dong

Luo

et al. 2018

CAER

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Purpose The purpose of this paper is to examine the role of education in the labor market and to understand how returns to education change over time in rural China. Design/methodology/approach Using nationally representative survey data from 2004 to 2015, this study provides insights on wage determination in the labor market and examines how the returns to education in rural China differ with time and educational endowment. This study applies ordinary least squares estimation and the Heckman selection model to estimate the returns to education. Findings The returns to education decreased during the observed years from more than 6 percent in 2004 to only about 3 percent in 2011, rising to nearly 4 percent in 2015. The overall trend is robust and observed within groups defined by education. Additionally, the returns to education vary greatly with educational endowment. Tertiary education has always maintained a high rate of returns at nearly 10 percent, while returns to senior high school education and below have gradually diminished. Originality/value The authors believe that the results will not only enrich studies on the returns to education in rural China, but also provide a basis for diagnosing the changes of rural labor market in the early twenty-first century.

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Section: Previous Studies Regarding Returns To Educationmentioning

confidence: 99%

“…Since the introduction of economic reforms in China in the late 1970s, China’s rural economy has experienced rapid growth. The rural labor market has changed dramatically over the past few decades and its emergence and further development has contributed significantly to the rural economy (Zhang et al , 2002; Li et al , 2005).…”

Section: Introductionmentioning

confidence: 99%

Changes in returns to education for off-farm wage employment: evidence from rural China

Wang

Dong

Luo

et al. 2018

CAER

Self Cite

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“…Using the UHS data, Zhang et al (2005) document continued increases in schooling returns in urban China from 4% in 1988 to 10.2% in 2001. For rural households, Li et al (2005) reports rising returns to education in the years 1988, 1992, 1996, and 2002 based on a rural sample in northern Jiangsu. Similarly, Zhang et al (2008) …nds that the rate of returns to education rose to 7% for a national representative rural sample in 2004.…”

Section: Returns To Educationmentioning

confidence: 99%

Labor market developments in China: A neoclassical view

Yang

2011

China Economic Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. we find that rural workers expanded off-farm work when mobility restrictions were lifted, interprovincial migration responded to expected earnings and local employment conditions, and returns to education converged gradually to the international standard. These findings suggest major progresses in the integration of labor markets in China.JEL Classification: J31, J21, O11

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“…For example, some scholars suggested that non-market factors play an important role in the labor market, and that the role of human capital has not been reflected [17][18][19]. Others have demonstrated that the labor market is constantly improving because education has a significant effect on wage determination [5,20,21]. Returns to education is an effective and reliable indicator that not only reflects the incentives for human capital accumulation and the efficiency of labor resource allocation, but also guides public and private investment in education [22].…”

Section: Introductionmentioning

confidence: 99%

Returns to Education in Different Job Locations for Off-Farm Wage Employment: Evidence from China

et al. 2020

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In this study, we explore the returns to education among different job locations for off-farm wage employment using nationally representative samples from rural China. Through a series of robustness checks, we conclude that there is heterogeneity in returns to education for different job locations within the rural labor force. Specifically, we have found that the returns to education for laborers in big cities are significantly higher than those for laborers working both in ordinary cities and within counties. That is to say, the utility of education is better-reflected in big cities. We conclude that the returns to education in big cities are 5.4 percent, while the returns to education are no more than 1 percent in ordinary cities and within counties. These results suggest that labor markets in the underdeveloped regions of China have factors that undermine the productivity effect of human capital.

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Labor Market Emergence and Returns to Education in Rural China*

Cited by 17 publications

References 8 publications

Changes in returns to education for off-farm wage employment: evidence from rural China

Changes in returns to education for off-farm wage employment: evidence from rural China

Labor market developments in China: A neoclassical view

Returns to Education in Different Job Locations for Off-Farm Wage Employment: Evidence from China

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