Heterogeneous Returns to Education across Hukou-Migration Subgroups in China

Juan Huang and Weerachart Kilenthong

No 210, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: This paper uses the China Household Income Project 2018 dataset to estimate returns to education for various Hukou-migration subgroups. We overcome the endogeneity problem of years of schooling using an instrument based on the Great Expansion of Higher Education policy. Our results indicate that the highest returns are for urban native workers (27.4%), followed by urban Hukou-converted (25.0%) and rural native workers (14.7%). In contrast, the returns to education for rural-urban migrant workers are insignificant. Further analyses suggest that Hukou conversion significantly increased the returns to education for rural-origin people by enabling them access to better job opportunities.

Keywords: returns to education; Hukou system; migration; China (search for similar items in EconPapers)
JEL-codes: I24 I26 J15 J61 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2023-11
New Economics Papers: this item is included in nep-cna, nep-edu, nep-lab, nep-mig and nep-ure
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