What levels of education pay? Tables-education. pdf Return to high school is zero High school only serves as a way ofselection a Return to each year of vocational school 7.3 Return to each year of college: 10%
26 What levels of education pay? Tables-education.pdf ◼ Return to high school is zero ◼ High school only serves as a way of selection ◼ Return to each year of vocational school: 7.3% ◼ Return to each year of college: 10%
Conclusions We measure the causal effect of education on earnings using Chinese urban twins We find The true return is low, selectivity is high However, the low return is caused by the zero return of high school education The return to none-exam-oriented education such as college is comparable to western countries(10% We show that"twins studies are important Previous twins studies were challenged because the ols estimates and within-twin estimates are similar That is because, they study rich western countries where education opportunity is more equal and high education is less selective
27 Conclusions ◼ We measure the causal effect of education on earnings using Chinese urban twins ◼ We find ◼ The true return is low, selectivity is high ◼ However, the low return is caused by the zero return of high school education ◼ The return to none-exam-oriented education such as college is comparable to western countries (10%) ◼ We show that “twins studies” are important ◼ Previous twins studies were challenged because the OLS estimates and within-twin estimates are similar ◼ That is because, they study rich western countries, where education opportunity is more equal and high education is less selective
Policy implications College entrance exam is still needed, given the huge population eager to get education a However, policies can improve the overall efficiency of education expenditure Cutting high school by one year, and use the saved resources for other education levels a China may not be unique, other Asian countries/regions may be similar
28 Policy implications ◼ College entrance exam is still needed, given the huge population eager to get education ◼ However, policies can improve the overall efficiency of education expenditure ◼ Cutting high school by one year, and use the saved resources for other education levels ◼ China may not be unique, other Asian countries/regions may be similar
Economic returns to Communist Party Membership Evidence from Urban Chinese Twins Hongbin li Pak ai liu unseen thang Ning ma he Chinese University of Hong Kong 29
29 Economic Returns to Communist Party Membership: Evidence from Urban Chinese Twins Hongbin Li Pak Wai Liu Junsen Zhang Ning Ma The Chinese University of Hong Kong
Value of political connections a Recently, growing interest in measuring the value of political connections/status a Political connections are valuable for firms and individuals in both developed and developing countries(roberts, 1990; Fisman, 2001; Agrawal and knoeber. 2001 Johnson and mitton 2003 Faccio, 2004: Bertrand et al. 2004 Khwaja and Man,2004)
30 Value of political connections ◼ Recently, growing interest in measuring the value of political connections/status ◼ Political connections are valuable for firms and individuals in both developed and developing countries (Roberts, 1990; Fisman, 2001; Agrawal and Knoeber, 2001; Johnson and Mitton, 2003; Faccio, 2004; Bertrand et al., 2004; Khwaja and Mian, 2004)