Journal Article

Labor Migration and Returns to Rural Education in China

Yaohui Zhao

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 4, pages 1278-1287
Published in print November 1997 | ISSN: 0002-9092
Published online November 1997 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244284
Labor Migration and Returns to Rural Education in China

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  • Demand and Supply of Labour
  • Household Analysis
  • Socialist Systems and Transitional Economies
  • Economic Development

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This paper provides an answer to the following question: Why do empirical studies find low returns to schooling in rural China, and yet the schooling rates are high? I find that schooling played a significant role in raising the accessibility of urban formal employment to rural people in the late 1970s and early 1980s in the face of the government's restrictive policy on labor migration from rural to urban areas. The large urban-rural income difference provided a strong incentive for senior high school education. The theory also explains the drop in the senior high school attendance in the mid 1980s.

Keywords: labor migration; labor market segregation; returns to education; J240; O150; O180; P230; R230

Journal Article.  0 words. 

Subjects: Demand and Supply of Labour ; Household Analysis ; Socialist Systems and Transitional Economies ; Economic Development

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