Reporting errors, ability heterogeneity, and returns to schooling in China

Li, Haizheng; Luo, Yi

doi:10.1111/j.1468-0106.2004.00244.x

“…Chen and Hamori, 2009;Trostel et al, 2002;Arabsheibani and Mussurov, 2007) have utilized spousal education as an IV, while some have utilized parental education (e.g. Flabbi et al, 2008;Gao and Smyth, 2011;Heckman and Li, 2004;Li and Luo, 2004;Wang et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

Estimating returns to education when the IV sample is selective

Le

¹

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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“…Liu, Hammitt and Lin (2000) estimate a wage equation for Taiwanese and find that the effect of father's schooling on wages is larger than the effect of mother's schooling -a university-educated father is associated with a 15% wage advantage compared with an illiterate father in the private sector. Li and Luo (2004) study the case of China and find that father's education is significant in affecting children's wages but mother's education is not significant.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The CHIP dataset is also nationally representative and has been widely used in the literature as it is more accessible to the research community compared to NBS datasets (Li and Luo, 2004;Fleisher et. al., 2004).…”

Section: Data and Sample Statisticsmentioning

confidence: 99%

Parental education and wages: Evidence from China

Chen

¹

,

Feng

²

2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Using nationally representative data in China, we find substantial positive partial correlations of both parents' education with one's wage. In addition, returns to father's education are higher in more monopsonistic and less meritocratic labor markets, including non-coastal regions, the state-owned sector, and the early periods of the reform era. The opposite is, however, true with respect to mother's education. Overall, the empirical evidence is consistent with the story that father's education mainly indicates family connections useful for locating a better-paying first job, while mother's education primarily captures unmeasured ability.JEL Classification: J30, J62

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“…Researchers have generally used the IV method (see e.g. Li and Luo 2004) to isolate the causal effect of education on earnings. Thus, for example, Fersterer and Winter-Ebmer (2003) use information on whether the individual smokes at age 16 or not to help differentiate between the effects of education and ability.…”

Section: The Data and Model Specificationmentioning

confidence: 99%

“…The availability of CHIP 1995 data makes it possible to construct instrumental variables (IV) for alternative estimations. Li and Luo (2004) used the CHIP 1995 data and applied various IV estimations to estimate returns to schooling for young workers (aged 30 or under in 1995) in urban China. Their results indicated that the returns to education are considerably higher than those obtained from the use of OLS.…”

Section: Literature Reviewmentioning

confidence: 99%