The returns to education in rural China: Some new estimates

Chengfang Liu, Ye Li, Shaoping Li, Renfu Luo, Linxiu Zhang, Scott Rozelle, Spencer Hagist and Jack Hou

Australian Journal of Agricultural and Resource Economics, 2020, vol. 64, issue 01

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.

Keywords: Community/Rural/Urban Development; Labor and Human Capital (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: The returns to education in rural China: Some new estimates (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:333891

DOI: 10.22004/ag.econ.333891

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