The rate of return to educational investment in China: a comparative commentary

Abstract

This article comments on several features of the rate of return (ROR) to educational investment in China: first, the ROR to educational investment has increased with the expansion of educational provision since the 1980s. Second, the greater the educational provision, the greater the ROR. Third, the ROR in urban areas is more than that in rural areas. Fourth, the ROR in the public sector is greater than that in the private sector. Meanwhile, from an international comparative perspective, it is commented that possible explanations of the above are a history of élite education and of a screening culture; the rapid transition from a planned economy to a market economy; and the segmentation of the labour market in China.

Keywords:

• rate of return
• educational investment
• labour markets
• China

Notes

1. China refers to Mainland China specifically and does not include Hong Kong, Macao or Taiwan.