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Returns to Education in Different Job Locations for Off-Farm Wage Employment: Evidence from China

Author

Listed:
  • Weidong Wang

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China)

  • Yongqing Dong

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

  • Yunli Bai

    (Key Laboratory of Ecosystem Network Observation and Modeling, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

  • Renfu Luo

    (School of Advanced Agricultural Sciences, Peking University, Beijing 100087, China)

  • Linxiu Zhang

    (International Ecosystem Management Partnership, United Nations Environment Programme, Beijing 100101, China)

  • Chengfang Liu

    (School of Advanced Agricultural Sciences, Peking University, Beijing 100087, China)

  • Spencer Hagist

    (Key Laboratory of Ecosystem Network Observation and Modeling, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

Abstract

In this study, we explore the returns to education among different job locations for off-farm wage employment using nationally representative samples from rural China. Through a series of robustness checks, we conclude that there is heterogeneity in returns to education for different job locations within the rural labor force. Specifically, we have found that the returns to education for laborers in big cities are significantly higher than those for laborers working both in ordinary cities and within counties. That is to say, the utility of education is better-reflected in big cities. We conclude that the returns to education in big cities are 5.4 percent, while the returns to education are no more than 1 percent in ordinary cities and within counties. These results suggest that labor markets in the underdeveloped regions of China have factors that undermine the productivity effect of human capital.

Suggested Citation

  • Weidong Wang & Yongqing Dong & Yunli Bai & Renfu Luo & Linxiu Zhang & Chengfang Liu & Spencer Hagist, 2020. "Returns to Education in Different Job Locations for Off-Farm Wage Employment: Evidence from China," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:455-:d:306007
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    References listed on IDEAS

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    2. Zhenshan Yang, 2023. "Human capital space: a spatial perspective of the dynamics of people and economic relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.

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