Economic Change and Restructuring

, Volume 43, Issue 2, pp 131–150

Private returns to education in urban China

Authors

  • Tian Qiu
    • Centre for Research in Medical and Dental Education (CRMDE)The University of Birmingham
    • Department of EconomicsUniversity of Bath
Article

DOI: 10.1007/s10644-009-9081-9

Cite this article as:
Qiu, T. & Hudson, J. Econ Change Restruct (2010) 43: 131. doi:10.1007/s10644-009-9081-9

Abstract

The paper examines the marginal returns of education in China for 4 years covering the period 1989–2000. We find, in common, with others that such returns were small in 1989 and 1993, but have increased steadily since 1993. We also find that the returns for women exceed those for men and go some way to reducing the gender earnings gap. Crucially, however, the returns to education decline with the length of time since the individual left school which is consistent with the hypothesis that education enhances ability and skills which in turn enhances earnings, but that the value of such skills deteriorates over time. Finally we find evidence for gravity effects by which earnings decline with distance from Beijing, and more noticeably, Shanghai.

Keywords

MincerHuman capitalGravity models

JEL Classification

J24J31O15

Copyright information

© Springer Science+Business Media, LLC. 2009