Increasing heterogeneity in the economic returns to higher education in urban China |
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| Institution: | 1. Department of Sociology, Peking University, Rm 135, No. 5 Science Building, Beijing 100871, China;2. College of Public Administration, Zhejiang University, 866 Yuhangtang Rd., Xihu District, Hangzhou 310058, China;3. Department of Sociology, University of Michigan, 500 S. State Street, Ann Arbor, MI 48109, USA;4. Department of Statistics, University of Michigan, 439 West Hall, 1085 South University, Ann Arbor, MI 48109, USA;5. National School of Development, Peking University, China;6. Development Strategy and Governance Division, International Food Policy Research Institute (IFPRI), 2033 K Street, NW, Washington, DC 20006, USA;7. Center for Social Research, Peking University, China;8. Quantitative Methodology Program/Population Studies Center, Institute for Social Research, University of Michigan, 426 Thompson, P.O. Box 1248, Ann Arbor, MI 48106-1248, USA |
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| Abstract: | This study investigates individual heterogeneity in the economic returns to higher education in urban China following large-scale higher education expansion. We draw on data from the urban section of two waves of the Chinese General Social Survey, analyzing a sample of 1022 individuals in total who (1) were aged between 25 and 32; (2) completed high school education; and (3) were currently employed. Individual-level estimates of the distributions of the returns to higher education are obtained using a nonparametric kernel approach. While the average rate of returns to higher education increased for the 2003–2010 period, the extent of heterogeneity in these returns increased as well. Analysis of the heterogeneous returns to higher education across the distribution of income shows that the effects of college education are greatest at the upper end of the income distribution. Moreover, effect heterogeneity across the income distribution increased from 2003 to 2010. |
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| Keywords: | Heterogeneity Higher education Urban China |
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