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Does vocational education pay off in China? Instrumental-variable quantile-regression evidence

Li Dai and Pedro Martins

No 495, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: As China's firms upgrade their position in the quality ladder, vocational education may become more important. In this paper, we study returns to secondary vocational education in China paying attention to individual heterogeneity. We use instrumental variables based on geographical and longitudinal changes in enrolment to address the selection between the two types of education. We find that vocational education provides a wage premium vis-à-vis academic education of over 30% but which applies only for individuals at the middle of the conditional wage distribution.

Keywords: Human capital; vocational education; quantile treatment effects (search for similar items in EconPapers)
JEL-codes: C36 I25 I26 J24 J31 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cna, nep-lma and nep-tra
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Citations: View citations in EconPapers (6) Track citations by RSS feed

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:495

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