Understanding trends in Chinese skill premiums, 2007–2018

Eric A. Hanushek, Yuan Wang and Lei Zhang

Journal of Comparative Economics, 2025, vol. 53, issue 2, 584-608

Abstract: The dramatic changes in China from expansion of the education system and transformation of the economy allow us to investigate how the market rewards skills. We estimate the evolution of the labor market returns to cognitive skills and to a college degree in China between 2007 and 2018. The return to cognitive skills is virtually constant at 10 % for full-time workers with at least a high school education, whereas the college premium (relative to high school graduation) drops by >20 percentage points. Regional differences in returns highlight the importance of differential demand factors. The returns to college degrees are somewhat higher in economically more developed regions but the declining trend is most pronounced in the most developed region. The return to cognitive skills weakly increases in more developed regions and weakly decreases in less developed regions. Overall returns to cognitive skills are comparable to more-developed OECD countries.

Keywords: Chinese economy; Returns to skill; Cognitive skills; University expansion (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0147596725000277
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:53:y:2025:i:2:p:584-608

DOI: 10.1016/j.jce.2025.04.001

Access Statistics for this article

Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland

More articles in Journal of Comparative Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().