Returns to higher education in China – evidence from the 1999 higher education expansion using a fuzzy regression discontinuity

Fengyan Dai, Fang Cai, Yu Zhu (Lead / Corresponding author)

Research output: Contribution to journalArticlepeer-review

Abstract

China experienced a 47% expansion in higher education enrolment between 1998 and 1999 and a sixfold expansion in the decade to 2008. Using a fuzzy discontinuity in the months of births, we show that the 1999 expansion increased education by roughly 1 year around the cut-off point. Importantly, each additional year of university education induced by the expansion increases monthly earnings by 24%, whereas the corresponding OLS estimate is only 8%. Our findings are insensitive to alternative window widths, functional forms or the exclusion of the self-employed.

Original languageEnglish
Number of pages6
JournalApplied Economics Letters
Early online date12 Jan 2021
DOIs
Publication statusE-pub ahead of print - 12 Jan 2021

Keywords

  • China
  • Returns to higher education
  • higher education expansion
  • regression discontinuity design

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