African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4193

Full Length Research Paper

Return to education in China’s rural labor market

Lijian Qin1*, Chenggang Wang2 and Zhongyi Jiang3
1Finance and Public Administrative School, Anhui University of Finance and Economics, China. 2Department of Agricultural and Applied Economics, Texas Tech University; Texas AgriLIFE Research, Texas A&M University, USA. 3Research Center for Rural Economics, Ministry of Agriculture, China.
Email: [email protected]

  •  Accepted: 04 June 2013
  •  Published: 07 July 2013

Abstract

The purpose of this study is to estimate the return to education in China’s rural labor market. We find that education increases off-farm employment participation and earnings. An additional year of schooling increases the earnings of a rural worker by 4.50%. Individuals with an education of senior middle school and above have significantly higher wages than those without. Furthermore, the type of education bringing strong economic benefits to rural Chinese is not limited to traditional school education; short-term skill training programs also boosts off-farm income.

 

Key words: Return to education, rural labor market, China.