Sorting, Selection, and Transformation of the Return to College Education In China

Belton Fleisher (), Haizheng Li, Shi Li () and Xiaojun Wang ()

No wp756, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: We estimate selection and sorting effects on the evolution of the private return to schooling for college graduates during China’s reform between 1988 and 2002. We pay special attention to the changing role of sorting by ability versus budget-constraint effects as China’s education policy has changed from one in which the bulk of direct costs are paid by government for students who pass a rigid set of test to one in which freedom of choice is increasingly the rule for those who can afford to pay for tuition and living expenses while acquiring higher education. We find evidence of substantial sorting gains under the traditional system but that gains have diminished and even become negative as schooling choices widened and participation has become subject to increasing direct private costs. We take this as evidence consistent with the influence of financial constraints on decisions to attend college.

Keywords: Return to schooling; sorting gains; heterogeneity; financial constraints; comparative advantage; China (search for similar items in EconPapers)
JEL-codes: J24 J31 O15 (search for similar items in EconPapers)
Pages: pages
Date: 2000-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Sorting, Selection, and Transformation of Return to College Education in China (2005)
Working Paper: Sorting, Selection, and Transformation of the Return to College Education in China (2004)
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