Returns to education in China's urban labour market: evidence from matched employer-employee data for Shanghai

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Abstract

This chapter estimates the economic returns to schooling in urban China. To do so, we use a unique matched employer-employee data set from Shanghai collected by the Chinese Academy of Social Sciences in 2007. The ordinary least squares estimates suggest that the returns to an additional year of schooling are in the range 6.9-7.4 %. The inclusion of firm characteristics and ownership categories do not affect the coefficient on schooling, but the inclusion of industry categories reduce the coefficient on schooling by 0.5 %. Consistent with most of the extant literature, we also find that the returns to an additional year of schooling for females (8.5-9 %) are higher than the returns to an additional year of schooling for males (6.4-6.7 %).

Original languageEnglish
Title of host publicationUrban China in the New Era
Subtitle of host publicationMarket Reforms, Current State, and the Road Forward
EditorsZhiming Cheng, Mark Wang, Junhua Chen
Place of PublicationHeidelberg Germany
PublisherSpringer-Verlag London Ltd.
Pages169-183
Number of pages15
ISBN (Electronic)9783642542275
ISBN (Print)9783642542268
DOIs
Publication statusPublished - 1 Jan 2014

Cite this

Mishra, V., & Smyth, R. (2014). Returns to education in China's urban labour market: evidence from matched employer-employee data for Shanghai. In Z. Cheng, M. Wang, & J. Chen (Eds.), Urban China in the New Era: Market Reforms, Current State, and the Road Forward (pp. 169-183). Springer-Verlag London Ltd.. https://doi.org/10.1007/978-3-642-54227-5_9