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Returns to education in China: Evidence from the great higher education expansion - ScienceDirect
Source: sciencedirect.com
Article summary:
1. China experienced a near 5-fold increase in annual Higher Education (HE) enrolment in the decade starting in 1999.
2. The Great HE Expansion has exacerbated a large pre-existing urban-rural gap in educational attainment underpinned by the hukou (household registration) system.
3. Returns to education for men and women were found to be 17% and 12%, respectively, allowing county fixed-effects.
Article analysis:
The article “Returns to Education in China: Evidence from the Great Higher Education Expansion” is an informative and well-researched piece that provides valuable insights into the effects of higher education expansion on earnings in China. The authors use data from the China Household Finance Survey to analyze the returns to education for men and women, finding that there are 17% and 12% returns, respectively, when controlling for county fixed-effects.
The article is generally reliable and trustworthy, as it is based on rigorous empirical analysis of a large dataset with appropriate controls for potential confounding factors such as hukou status at birth fully interacted with birth hukou province. Furthermore, the authors provide evidence that students from more disadvantaged backgrounds have at least as high returns to education as their more advantaged counterparts, suggesting that expanding access to higher education can benefit all segments of society.
However, there are some potential biases worth noting. First, while the authors do discuss some of the limitations of their study such as potential omitted variable bias due to unobserved characteristics or measurement error in self-reported earnings data, they do not explore other possible sources of bias such as selection bias or endogeneity issues due to reverse causality between educational attainment and earnings outcomes. Additionally, while they acknowledge that expanding access to higher education can have positive externalities beyond individual earnings outcomes such as increased productivity or improved health outcomes, these are not explored further in depth which could provide additional insights into the benefits of higher education expansion.
In conclusion, this article provides useful information about returns to higher education in China but should be read with caution given its potential biases and limitations discussed above.