[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/38922.html
   My bibliography  Save this paper

Siblings, public facilities and education returns in China

Author

Listed:
  • Kang, Lili
  • Peng, Fei
Abstract
This paper investigates the intrahousehold resource allocation on children’s education and its earnings consequence in Chinese labour market. In order to overcome the endogeneity problem of schooling, we consider the siblings structure and the available public facilities as instrumental variables. Females’ education is negatively affected by siblings (brothers or sisters) number, while males’ education is also negatively affected by their brothers but much less by their sisters. For the youngest cohort born after 1980, the education of a girl would be heavily impeded by her sisters, reflecting strong distortion of “One-Child Policy” on intrahousehold resource allocation. Comparing the OLS and GIV estimations for returns to schooling, we find that there are downwards biases of OLS estimations for males in all cohorts and in all years. However, for females, downwards biases of OLS estimation are only for data before 2004, as females in the old cohorts actually have upwards biases after 2004. Education returns of the youngest cohort are much higher than old cohorts supporting the argument of heterogeneous human capital accumulation during transition.

Suggested Citation

  • Kang, Lili & Peng, Fei, 2012. "Siblings, public facilities and education returns in China," MPRA Paper 38922, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38922
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/38922/3/MPRA_paper_38922.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fleisher, Belton M. & Wang, Xiaojun, 2005. "Returns to schooling in China under planning and reform," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 265-277, June.
    2. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    3. Fleisher, Belton & Li, Haizheng & Zhao, Min Qiang, 2010. "Human capital, economic growth, and regional inequality in China," Journal of Development Economics, Elsevier, vol. 92(2), pages 215-231, July.
    4. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    5. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    6. Gary Solon & Robert Barsky & Jonathan A. Parker, 1994. "Measuring the Cyclicality of Real Wages: How Important is Composition Bias?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 1-25.
    7. Philippe Belley & Lance Lochner, 2007. "The Changing Role of Family Income and Ability in Determining Educational Achievement," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 37-89.
    8. William L. Parish & Robert J. Willis, 1993. "Daughters, Education, and Family Budgets Taiwan Experiences," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 863-898.
    9. Richard B. Freeman, 2007. "Labor Market Institutions Around the World," NBER Working Papers 13242, National Bureau of Economic Research, Inc.
    10. CHEN, Guifu & HAMORI, Shigeyuki, 2009. "Economic returns to schooling in urban China: OLS and the instrumental variables approach," China Economic Review, Elsevier, vol. 20(2), pages 143-152, June.
    11. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    12. Xin Meng & Junsen Zhang & Pak-Wai Liu, 2000. "Sectoral gender wage differentials and discrimination in the transitional Chinese economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(2), pages 331-352.
    13. Stephanie Seguino & Caren Grown, 2006. "Gender equity and globalization: macroeconomic policy for developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1081-1104.
    14. Li, Wenli, 2007. "Family background, financial constraints and higher education attendance in China," Economics of Education Review, Elsevier, vol. 26(6), pages 724-734, December.
    15. Flabbi, Luca & Paternostro, Stefano & Tiongson, Erwin R., 2008. "Returns to education in the economic transition: A systematic assessment using comparable data," Economics of Education Review, Elsevier, vol. 27(6), pages 724-740, December.
    16. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(2), pages 222-240, April.
    17. Pal, Sarmistha, 2010. "Public infrastructure, location of private schools and primary school attainment in an emerging economy," Economics of Education Review, Elsevier, vol. 29(5), pages 783-794, October.
    18. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    19. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    20. Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November.
    21. Lili Kang & Fei Peng, 2012. "A selection analysis of returns to education in China," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 535-554, March.
    22. Emily Oster & Rebecca Thornton, 2011. "Menstruation, Sanitary Products, and School Attendance: Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 91-100, January.
    23. repec:bla:pacecr:v:9:y:2004:i:3:p:191-207 is not listed on IDEAS
    24. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Children's Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 669-700.
    25. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    26. Rutkowski, Jan J., 2001. "Earnings inequality in transition economies of Central Europetrends and patterns during the 1990s," Social Protection Discussion Papers and Notes 23306, The World Bank.
    27. Colm Harmon & Ian Walker, 2000. "The Returns to the Quantity and Quality of Education: Evidence for Men in England and Wales," Economica, London School of Economics and Political Science, vol. 67(265), pages 19-35, February.
    28. Meng, Xin & Kidd, Michael P., 1997. "Labor Market Reform and the Changing Structure of Wage Determination in China's State Sector during the 1980s," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 403-421, December.
    29. repec:bla:pacecr:v:9:y:2004:i:3:p:155-171 is not listed on IDEAS
    30. Silles, Mary A., 2010. "The implications of family size and birth order for test scores and behavioral development," Economics of Education Review, Elsevier, vol. 29(5), pages 795-803, October.
    31. Nancy Qian, 2008. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1251-1285.
    32. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    33. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    34. Maimaiti, Yasheng & Siebert, W. Stanley, 2009. "The Gender Education Gap in China: The Power of Water," IZA Discussion Papers 4108, Institute of Labor Economics (IZA).
    35. Colm Harmon & Ian Walker & Niels Westergaard-Nielsen, 2001. "Introduction [to Education and earnings in Europe : a cross country analysis of the returns to education]," Open Access publications 10197/757, School of Economics, University College Dublin.
    36. Von Braun, Joachim, 1988. "Effects of technological change in agriculture on food consumption and nutrition: Rice in a West African setting," World Development, Elsevier, vol. 16(9), pages 1083-1098, September.
    37. Zhang, Junsen & Zhao, Yaohui & Park, Albert & Song, Xiaoqing, 2005. "Economic returns to schooling in urban China, 1988 to 2001," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 730-752, December.
    38. Uusitalo, Roope, 1999. "Return to education in Finland," Labour Economics, Elsevier, vol. 6(4), pages 569-580, November.
    39. Lixing Li & Xiaoyu Wu, 2011. "Gender of Children, Bargaining Power, and Intrahousehold Resource Allocation in China," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 295-316.
    40. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512, July.
    41. Edlund, Lena & Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2007. "Sex Ratios and Crime: Evidence from China’s One-Child Policy," IZA Discussion Papers 3214, Institute of Labor Economics (IZA).
    42. Kristin F. Butcher & Anne Case, 1994. "The Effect of Sibling Sex Composition on Women's Education and Earnings," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 531-563.
    43. Colm Harmon & Ian Walker & Niels Westergaard-Nielsen (ed.), 2001. "Education and Earnings in Europe," Books, Edward Elgar Publishing, number 2237.
    44. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, April.
    45. Björn Gustafsson & Shi Li, 2000. "Economic transformation and the gender earnings gap in urban China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(2), pages 305-329.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wenshu Gao & Russell Smyth, 2015. "Education expansion and returns to schooling in urban China, 2001–2010: evidence from three waves of the China Urban Labor Survey," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(2), pages 178-201, April.
    2. Yao, Yao & Chen, George S. & Salim, Ruhul & Yu, Xiaojun, 2018. "Schooling returns for migrant workers in China: Estimations from the perspective of the institutional environment in a rural setting," China Economic Review, Elsevier, vol. 51(C), pages 240-256.
    3. Vinod Mishra & Russell Smyth, 2012. "It Pays to Be Happy (If You are a Man): Subjective Wellbeing and the Gender Wage Gap in Urban China," Monash Economics Working Papers 51-12, Monash University, Department of Economics.
    4. M Niaz Asadullah & Saizi Xiao, 2019. "Labor Market Returns to Education and English Language Skills in the People's Republic of China: An Update," Asian Development Review, MIT Press, vol. 36(1), pages 80-111, March.
    5. Vinod Mishra & Russell Smyth, 2012. "Returns to Schooling in Urban China: New Evidence Using Heteroskedasticity Restrictions to Obtain Identification Without Exclusion Restrictions," Monash Economics Working Papers 33-12, Monash University, Department of Economics.
    6. Wenshu Gao & Russell Smyth, 2012. "Returns to Schooling in Urban China, 2001-2010: Evidence from Three Waves of the China Urban Labor Survey," Monash Economics Working Papers 50-12, Monash University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peng, Fei & Anwar, Sajid & Kang, Lili, 2022. "Number of siblings, access to treated water and returns to education in China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 526-538.
    2. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Lili Kang & Fei Peng, 2012. "A selection analysis of returns to education in China," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 535-554, March.
    4. Sefa Awaworyi Churchill & Vinod Mishra, 2018. "Returns to education in China: a meta-analysis," Applied Economics, Taylor & Francis Journals, vol. 50(54), pages 5903-5919, November.
    5. Gary-Bobo, Robert J. & Prieto, Ana & Picard, Natalie, 2006. "Birth Order and Sibship Sex Composition as Instruments in the Study of Education and Earnings," CEPR Discussion Papers 5514, C.E.P.R. Discussion Papers.
    6. Ding, Feng & Du, Limin & Shi, Jinchuan, 2020. "Lucky to have a sister: The effects of unmarried sister on brother outcomes in late imperial China," China Economic Review, Elsevier, vol. 64(C).
    7. Li, Bingjing & Zhang, Hongliang, 2017. "Does population control lead to better child quality? Evidence from China’s one-child policy enforcement," Journal of Comparative Economics, Elsevier, vol. 45(2), pages 246-260.
    8. Anita V. Staneva & Hany Abdel-Latif, 2016. "From Soviet to Europe: Returns to Education Puzzle in Bulgaria," LABOUR, CEIS, vol. 30(3), pages 347-367, September.
    9. Tamar Khitarishvili, 2010. "Assessing the Returns to Education in Georgia," Economics Working Paper Archive wp_608, Levy Economics Institute.
    10. Hai Fang & Karen N. Eggleston & John A. Rizzo & Scott Rozelle & Richard J. Zeckhauser, 2012. "The Returns to Education in China: Evidence from the 1986 Compulsory Education Law," NBER Working Papers 18189, National Bureau of Economic Research, Inc.
    11. Chalfin, Aaron & Deza, Monica, 2019. "The intergenerational effects of education on delinquency," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 553-571.
    12. Lin Xiu & Morley Gunderson, 2013. "Credential Effects and the Returns to Education in China," LABOUR, CEIS, vol. 27(2), pages 225-248, June.
    13. Manuel Salas Velasco, 2004. "Rendimientos privados de las inversiones en educación superior a partir de ecuaciones de ingresos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 169(2), pages 87-117, June.
    14. Wang, Xiaojun & Fleisher, Belton M. & Li, Haizheng & Li, Shi, 2007. "Access to Higher Education and Inequality: The Chinese Experiment," IZA Discussion Papers 2823, Institute of Labor Economics (IZA).
    15. Briole, Simon & Le Forner, Hélène & Lepinteur, Anthony, 2020. "Children’s socio-emotional skills: Is there a quantity–quality trade-off?," Labour Economics, Elsevier, vol. 64(C).
    16. Balestra, Simone & Backes-Gellner, Uschi, 2017. "Heterogeneous returns to education over the wage distribution: Who profits the most?," Labour Economics, Elsevier, vol. 44(C), pages 89-105.
    17. Wang, Le, 2012. "Economic transition and college premium in urban China," China Economic Review, Elsevier, vol. 23(2), pages 238-252.
    18. Emilia Bedyk & Jacek Liwiński, 2016. "The wage premium from parents’ investments in the education of their children in Poland," Working Papers 2016-14, Faculty of Economic Sciences, University of Warsaw.
    19. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2003. "Evaluating the impact of education on earnings in the UK: Models, methods and results from the NCDS," IFS Working Papers W03/20, Institute for Fiscal Studies.
    20. Emla Fitzsimons & Bansi Malde, 2014. "Empirically probing the quantity–quality model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 33-68, January.

    More about this item

    Keywords

    Siblings; education returns; China;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38922. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.