IDEAS home Printed from https://ideas.repec.org/a/taf/edecon/v7y1999i2p167-187.html
   My bibliography  Save this article

Education and Earnings in Rural China

Author

Listed:
  • Xin Wei
  • Mun Tsang
  • Weibin Xu
  • Liang-Kun Chen

Abstract

This is a study of education and earnings in rural China, based on data for 3709 residents from 23 counties in six provinces of central and southwestern regions in 1991. It found that education was singnificantly and positively related to earnings; an additional year of schooling raised the earnings of rural resindents by 4.8 yuan per month. The earnings effect on education was stronger for males than for females. The education and earnings relationship was also stronger in economic sectors with more market-oriented reform; and economic returns tended to be higher in economically more advanced provinces and regions. According to the Mincerian method, the average private rate of return to education was 4.8%. The Mincerian rates were similar for males and females, but were higher for ecnonmically more advanced provinces and regions. According to the elaborate method, the unadjusted private rate of return was 9.0% for promary educaion and 11.2%for lower-secondary education. Thus, investment in compulsory education in poor rural areas in China was quite profitable for the individual and could also be profitable from the perspective of society.

Suggested Citation

  • Xin Wei & Mun Tsang & Weibin Xu & Liang-Kun Chen, 1999. "Education and Earnings in Rural China," Education Economics, Taylor & Francis Journals, vol. 7(2), pages 167-187.
  • Handle: RePEc:taf:edecon:v:7:y:1999:i:2:p:167-187
    DOI: 10.1080/09645299900000014
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/10.1080/09645299900000014
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09645299900000014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    3. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chad Meyerhoefer & C. Chen, 2011. "The effect of parental labor migration on children’s educational progress in rural china," Review of Economics of the Household, Springer, vol. 9(3), pages 379-396, September.
    2. M Niaz Asadullah & Saizi Xiao, 2019. "Labor Market Returns to Education and English Language Skills in the People's Republic of China: An Update," Asian Development Review, MIT Press, vol. 36(1), pages 80-111, March.
    3. Emran, M. Shahe & Sun, Yan, 2014. "Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China," MPRA Paper 59230, University Library of Munich, Germany.
    4. Hongyun Han, 2010. "Trends in educational assortative marriage in China from 1970 to 2000," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(24), pages 733-770.
    5. Hongmei Yi & Linxiu Zhang & Chengfang Liu & James Chu & Prashant Loyalka & May Maani & Jianguo Wei, 2013. "How Are Secondary Vocational Schools in China Measuring up to Government Benchmarks?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(3), pages 98-120, May.
    6. Aakanksha & Narendra Kumar Bishnoi, 2024. "Education and earnings: examining the returns across regular, casual, and self-employed labour markets," SN Business & Economics, Springer, vol. 4(6), pages 1-21, June.
    7. Phanhpakit ONPHANHDALA & Terukazu SURUGA, 2006. "Education and Earnings in Lao PDR: Regional and Gender Differences," GSICS Working Paper Series 4, Graduate School of International Cooperation Studies, Kobe University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    2. Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
    3. Kaspar W thrich, 2013. "Set Identification of Generalized Linear Predictors in the Presence of Non-Classical Measurement Errors," Diskussionsschriften dp1304, Universitaet Bern, Departement Volkswirtschaft.
    4. Schultz, T. Paul, 2009. "The Gender and Generational Consequences of the Demographic Transition and Population Policy: An Assessment of the Micro and Macro Linkages," Working Papers 71, Yale University, Department of Economics.
    5. Emanuela di Gropello, 2006. "Meeting the Challenges of Secondary Education in Latin America and East Asia : Improving Efficiency and Resource Mobilization," World Bank Publications - Books, The World Bank Group, number 7173.
    6. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
    7. Benoit Dostie & Pierre Thomas Léger, 2014. "Firm-Sponsored Classroom Training: Is It Worth It for Older Workers?," Canadian Public Policy, University of Toronto Press, vol. 40(4), pages 377-390, December.
    8. Zeng, Jinli & Zhang, Jie, 2022. "Education policies and development with threshold human capital externalities," Economic Modelling, Elsevier, vol. 108(C).
    9. Yi Fan, 2017. "Does Adversity Affect Long-Term Consumption and Financial Behaviour? Evidence from China's Rustication Programme," ERES eres2017_148, European Real Estate Society (ERES).
    10. Heckman, James J. & Urzúa, Sergio, 2010. "Comparing IV with structural models: What simple IV can and cannot identify," Journal of Econometrics, Elsevier, vol. 156(1), pages 27-37, May.
    11. Sandra Nieto & Raúl Ramos, 2013. "Non-Formal Education, Overeducation And Wages," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 21(1), pages 5-28, Spring.
    12. Galama, Titus & Kapteyn, Arie, 2011. "Grossman’s missing health threshold," Journal of Health Economics, Elsevier, vol. 30(5), pages 1044-1056.
    13. Cawley, John & Morrisey, Michael A., 2007. "The earnings of U.S. health economists," Journal of Health Economics, Elsevier, vol. 26(2), pages 358-372, March.
    14. Steffen Hillmert, 2002. "Labour Market Integration and Institutions: An Anglo-german Comparison," Work, Employment & Society, British Sociological Association, vol. 16(4), pages 675-701, December.
    15. Ilhom Abdulloev & Ira N Gang & Myeong-Su Yun, 2014. "Migration, Education and the Gender Gap in Labour Force Participation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 509-526, September.
    16. Contreras, Dulce/D & Sánchez, Rosario/R & Soria, Delfina/D, 2012. "Mobility, wages and gender across Europe," MPRA Paper 42589, University Library of Munich, Germany, revised Nov 2012.
    17. James J. Heckman, 2019. "The Race Between Demand and Supply: Tinbergen’s Pioneering Studies of Earnings Inequality," De Economist, Springer, vol. 167(3), pages 243-258, September.
    18. Peydró, José-Luis & Jasova, Martina & Mendicino, Caterina & Panetti, Ettore & Supera, Dominik, 2021. "Monetary Policy, Labor Income Redistribution and the Credit Channel: Evidence from Matched Employer-Employee and Credit Registe," CEPR Discussion Papers 16549, C.E.P.R. Discussion Papers.
    19. Guillermina Jasso, 1996. "Exploring the Reciprocal Relations between Theoretical and Empirical Work," Sociological Methods & Research, , vol. 24(3), pages 253-303, February.
    20. Domadenik, Polona & Far?nik, Daša & Pastore, Francesco, 2013. "Horizontal Mismatch in the Labour Market of Graduates: The Role of Signalling," IZA Discussion Papers 7527, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:7:y:1999:i:2:p:167-187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CEDE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.