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Parental Education and Wages: Evidence from China |
Yuanyuan Chen(), Shuaizhang Feng |
School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China |
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Abstract This paper investigates the relationship between parents’ education and children’s wage using two nationally representative data sets in China. Controlling for other things, both father’s and mother’s education are positively correlated with children’s wage. Nevertheless, returns to father’s education are lower in more market-oriented segments of the economy, including coastal regions, the non-state sector, and the later period of the reform era (post-1992), while the opposite is true for mother’s education. We argue that this new empirical evidence is consistent with the story that father’s education mainly indicates family connections useful for locating a better-paying first job, while mother’s education primarily captures unmeasured ability.
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Keywords
parental education
wages
family connections
unmeasured ability
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Corresponding Author(s):
Yuanyuan Chen,Email:shuaizhang.feng@gmail.com
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Issue Date: 05 December 2011
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