Returns to Education during the Reform of State‐owned Enterprises in Hunan, People’s Republic of China

Xiaoyu Huang, José Vaz Caldas and João Rebelo

LABOUR, 2002, vol. 16, issue 3, 513-535

Abstract: The objective of this paper is to analyse the impact of education on personal earnings during the reform of state‐owned enterprises, comparing 1995 with 1998 in Hunan, China, using the Mincerian earnings equation method. The results show that the rates of return to education increased, indicating that human capital has been better rewarded as the reforms of the Chinese economic structure have progressed. Moreover, the findings show that primary education receives the highest returns, followed by tertiary education. Middle school education obtains the lowest rewards, reflecting the effects of the reform of state‐owned enterprises on middle school graduates on whom the unemployment impact of this change has been the greatest.

Date: 2002
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