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| 1 |
ID:
134889
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| Summary/Abstract |
In recent years China has experienced a substantial increase in rural schooling levels and contemporaneous reforms in rural educational policies, including the nationwide adoption of free nine-year compulsory education, the two exempt and one compensation program, and the school consolidation policy. These developments point to the possibility that the determinants of rural education have changed. In this paper we examine empirically the determinants of rural high school attainment between 2002 and 2007. Using data from a nationwide household survey and a multilevel regression model with and without instrumental variables, we estimate the relationship between rural high school attainment and individual, family, and community level variables. We find that the size and significance of household income and other individual and household variables declined, while community characteristics and local public expenditures on schools continued to have a significant impact in both years. When we carry out the estimation using instrumental variables, the coefficients on parental education are no longer significant. We conclude that policy changes plus rapid income growth in rural China has brought about substantial change in the determinants of high school attainment, and that the widely observed correlation between parental and child education may be due to unobserved characteristics.
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| 2 |
ID:
110255
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| Publication |
2012.
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| Summary/Abstract |
This paper analyzes the changes in public-private sector earnings differentials for local residents in urban China between 2002 and 2007. We find that earnings gaps across ownership sectors decreased during this period and that the convergence trend has been in favor of the private and semi-public sectors as opposed to the public sector. This trend is in sharp contrast to what occurred at the turn of the 21st century when employees in the government and state-owned enterprises were found to enjoy a privileged situation. Differences in endowments are found to play a growing role in explaining earnings differentials. However, although it is becoming less of an issue, segmentation across ownership remains important, especially for high-wage earners.
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| 3 |
ID:
147415
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| Summary/Abstract |
This paper analyses the effects of innate ability, compulsory education (grades 1–9), and non-compulsory education (grades 10–12 and higher education) on inequality and intergenerational mobility of income, by constructing a four-period overlapping-generation model. We find that innate ability and family investment in early education play important roles in explaining income inequality and intergenerational income mobility. Though children from the wealthiest families are only 1.36 times ‘smarter’ that those from the poorest, the gap in human capital expands to 2.35 at the end of compulsory education and to 2.89 at the end of non-compulsory education. One important reason for the increase is that poor families invest relatively less in children's early education than do wealthy families; therefore, their children attend lower-quality schools, which results in them being much less likely to participate in higher education. By simulating policy experiments for different types of government education expenditure, we find that direct subsidies to poor parents are the most efficient and effective policy for mitigating poor families' budget constraints with regard to early-education investment in their children.
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