The returns to education in rural China: Some new estimates. (12th November 2019)

• Record Type: Journal Article
• Authors: Liu, Chengfang; Li, Ye; Li, Shaoping; Luo, Renfu; Zhang, Linxiu; Rozelle, Scott; Hagist, Spencer; Hou, Jack
• Other Names: Huang Jikun guestEditor.; Qiu Huanguang guestEditor.; Sheng Yu guestEditor.
• Is Part Of: Australian journal of agricultural and resource economics. Volume 64:Number 1(2020)
• Page Start: 189
• Page End: 208
• Publication Date: 2019-11-12
• Subjects: experience -- mismeasurement -- off‐farm employment -- return to education -- rural China; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Environmental aspects -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Australia -- Periodicals; Natural resources -- Australia -- Periodicals; 338.1
• DOI: 10.1111/1467-8489.12350
• Languages: English
• ISSNs: 1364-985X

Abstract

Abstract : We estimate the rates of return to education in rural China using primary survey data collected in 2016. Estimated average returns to education are 3.1 per cent. However, careful statistical analysis is required when estimating the returns to education. The paper demonstrates that when employment interruptions are accounted for, the measured returns to education rise. Our results also confirm that mismeasurement of the wage rate by using an hourly wage rate (versus daily or monthly earnings) raises the estimation of rates of return to education. Finally, our results suggest that the return to education is nonlinear in education levels but only when it reaches the tertiary level.