Economics at your fingertips  

"Study Hard and Make Progress Every Day": Updates on Returns to Education in China

Jie Chen and Francesco Pastore ()
Additional contact information
Jie Chen: UNSW Sydney

No 14139, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we apply Generalized Propensity Score Matching (GPSM) method, which deals with a continuous treatment variable, to estimate the returns to education in China from 2010 to 2017. Results are compared with OLS estimates from the classical Mincerian equation, as well as estimates from two instrumental variable methods (i.e., 2SLS and Lewbel). We use the Chinese General Social Survey data, including a subset newly released in 2020. We find that returns to education in China experienced a slight decrease in 2010-2015, but reverted back in 2017. With the more flexible GPSM method, we also find that returns to university education remain higher than returns to secondary or compulsory education. The GPSM estimates are also closer to OLS estimates, compared to both instrumental variable methods.

Keywords: returns to education; endogeneity; continuous treatment; sample selection; GPSM; IV; Lewbel; China (search for similar items in EconPapers)
JEL-codes: I26 J30 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2021-02
New Economics Papers: this item is included in nep-cna
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Working Paper: "Study hard and make progress every day": Updates on returns to education in China (2021) Downloads
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:

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

Page updated 2021-10-23
Handle: RePEc:iza:izadps:dp14139