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- W73996475 abstract "The question of whether or how education affects income is a basic concern for economists and policy makers. The fact that education improves one's living perspectives is also a strong argument for undertaking substantial schooling investment in the developed and developing worlds. All these initiatives point to a more fundamental question: How do the better educated earn more? This study seeks to understand this question by drawing on the experience of policy reforms in rural China. In particular, I estimate the net profit function of rural households using China Household Income Project in 2002. I find strong support that education is rewarded through affecting households' allocation of labor and investments. It is estimated that an additional year of education is associated with 2.54 percent increase in net profits: 1.1 percent comes from better allocation of labor; 0.35 percent comes from better utilization of investment; 1.09 percent is due to the direct impact of education on earnings. The study has potentially important policy implications for completing China's economic reforms in that education is a crucial element. It also mirrors the experiences of other developing countries and shed light on how schooling should be financed: focusing on a few rather than universal provision may have a more profound impact on earnings." @default.
- W73996475 created "2016-06-24" @default.
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- W73996475 date "2017-11-29" @default.
- W73996475 modified "2023-09-24" @default.
- W73996475 title "How Do the Better Educated Earn More? Evidence from Rural China" @default.
- W73996475 doi "https://doi.org/10.24908/iqurcp.7638" @default.
- W73996475 hasPublicationYear "2017" @default.
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