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Higher Education Expansion Policy and College Graduate Wages

In: Labor Market Institutions in China

Author

Listed:
  • Xinxin Ma

    (Hosei University)

Abstract

The Chinese government implemented Higher Education Expansion PolicyHigher Education Expansion Policy (HEEP) (HEEP) in 1999. This dramatic increase in the college graduateCollege graduates labor supply may have affected the wageWage levels of young college graduates. Using longitudinal survey dataLongitudinal survey data from the ChinaChina Health and Nutrition SurveyChinese Health and Nutrition Survey (CHNS) from 1997 to 2011, this study investigates how HEEP impacts the wageWage levels of college graduates in China. Four key conclusions emerge from the empirical results. First, HEEP does not significantly affect the wage levels of young college graduates. Second, the differences in HEEP’s impact on wagesWage across various wage percentiles are minimal. Third, HEEP decreases the wage levels of new college graduates in the short term; however, this negative effect disappears over the long term. Fourth, the differences in HEEP’s impact on wages between regions and gender groups are small. However, the policy’s impact significantly differs between urban and rural hukou workers.

Suggested Citation

  • Xinxin Ma, 2024. "Higher Education Expansion Policy and College Graduate Wages," Springer Books, in: Labor Market Institutions in China, chapter 0, pages 113-140, Springer.
    • Handle: RePEc:spr:sprchp:978-981-97-6156-2_5
    DOI: 10.1007/978-981-97-6156-2_5
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