Estimating the External Returns to Education: Evidence from China

DC FieldValueLanguage
dc.contributor.authorFan, Wen-
dc.contributor.authorMa, Yuanyuan-
dc.date.accessioned2012-09-27T14:12:09Z-
dc.date.available2012-09-27T14:12:09Z-
dc.date.issued2012-08-
dc.identifier.other201220en
dc.identifier.urihttp://hdl.handle.net/10197/3826-
dc.description.abstractGood understanding on the human capital externalities is important for both policy makers and social science researchers. Economists have speculated for at least a century that the social returns to education may exceed the private returns. In this paper, using the longitudinal data from China Health and Nutrition Survey (CHNS), we examine how individual wage changes associated with the share of college graduates in the same province across years for a person who has never moved by implementing individual fixed effects estimates. The individual fixed effect model shows that the external returns to education in China appear to be negative and on the order of -2%, which might be biased by potential endogeneity. Concerned with this problem, we then implement the IV fixed effect estimates and find positive external returns to education at about 10%. We also find this returns differ across individual heterogeneity.en
dc.description.sponsorshipNot applicableen
dc.language.isoenen
dc.publisherUniversity College Dublin. School of Economicsen
dc.relation.ispartofseriesUCD Centre for Economic Research Working Paper Seriesen
dc.relation.ispartofseriesWP12/20en
dc.relation.requiresEconomists Online Collection & RePEcen
dc.subjectEducationen
dc.subjectExternalitiesen
dc.subjectSpilloveren
dc.subjectSignallingen
dc.subjectChinaen
dc.subject.lcshWages--College graduates--Chinaen
dc.subject.lcshWages--Effect of education on--Chinaen
dc.subject.lcshExternalities (Economics)en
dc.subject.lcshEducation--Social aspects--Chinaen
dc.titleEstimating the External Returns to Education: Evidence from Chinaen
dc.typeWorking Paperen
dc.internal.availabilityFull text availableen
dc.internal.webversionshttp://www.ucd.ie/t4cms/WP12_20.pdf-
dc.statusNot peer revieweden
dc.neeo.contributorFan|Wen|aut|-
dc.neeo.contributorMa|Yuanyuan|aut|-
item.grantfulltextopen-
item.fulltextWith Fulltext-
Appears in Collections:Economics Working Papers & Policy Papers
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