Rates of Return to Schooling in China

Abstract

This study uses data from a 1988 survey of Chinese individuals to estimate rates of return to schooling in China. The Mincer‐type rate of return to schooling was estimated at 4.02 percent in the rural areas and 3.29 percent in the urban areas; these are fairly low estimates compared with similar estimates in other countries. The rate of return to schooling for females was significantly higher than that for males in urban areas. In addition, members of the Communist Party in urban areas had significantly lower returns to schooling compared with non‐members.