A Study of the Education Rate of Return for Rural Residents in Northwest Minority Areas

Abstract

Studying the rate of return for rural residents in minority areas can give a good explanation for the problems of children enrolling in school and dropping out. On the whole, the education rate of return for rural residents in northwest minority areas is low, the Mincer function estimate is 2%, and the Heckman model estimate is 2.49%. The rate of return for minorities is greater than that for the Han. Between the sexes, the rate of return for Han men is lower than that for Han women. For various minorities, the education rates of return for men are greater than for women. At different stages of education, the rate of return for minorities is generally greater than that for the Han. The rates of return for the Han rise along with elementary school, middle school, and high school level of education. For those with a middle school, rates of return are negative, and exhibit a “U” model structure.

Notes

A concept that American economist Driskill came up with in 1999 based on traditional human capital theory. The hierarchy of human capital means that the production of higher levels of human capital comes from the investment of lower levels of human capital, and without investment of lower levels of human capital the investment of higher levels of human capital cannot be realized.

Additional information

Notes on contributors

Sun Baicai

Sun Baicai is a professor in the College of Politics and Public Administration at Qingdao University.