Title

How divergent were returns to education investments in China?

Document Type

Journal article

Source Publication

Asian Social Science

Publication Date

1-1-2012

Volume

8

Issue

1

First Page

67

Last Page

72

Keywords

China, Costs of schooling, Divergence, Returns to education, Wage increment

Abstract

This paper uses the wage increment approach to measure the social and private returns to educational investments in China at various educational levels and how they change over time. The social returns to the investments in higher education were found to be increasing over time whilst the returns to the secondary level were declining over time. This indicates that China should raise its annual investment in higher education vis-à-vis secondary schools. We also found that the private returns to undergraduate level were substantially smaller than those to secondary level. This may lead to under-enrollment in undergraduate education. The above divergences or imbalances, if not rectified, could give rise to increasing scale of skilled labor shortages at the time when the economy boomed.

DOI

10.5539/ass.v8n1p67

Print ISSN

19112017

E-ISSN

19112025

Publisher Statement

Copyright © 2012 Canadian Center of Science and Education

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Voon, J. P., & Voon, J. C. (2012). How divergent were returns to education investments in China? Asian Social Science, 8(1), 67-72. doi: 10.5539/ass.v8n1p67