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)

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    6 Citations (Scopus)
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    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
    Pages (from-to)489-494
    Number of pages6
    JournalApplied Economics Letters
    Volume29
    Issue number6
    Early online date12 Jan 2021
    DOIs
    Publication statusPublished - 2022

    Keywords

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

    ASJC Scopus subject areas

    • Economics and Econometrics

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