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The Causal Effect of High Education on Individuals’ Income in Rural and Urban China

Tao Zou

Abstract


Children’s education has been a hot topic in China in recent years. To explore the causal impact of education on earnings, this paper uses the PSM method in the counterfactual framework. The paper uses CGSS observational data to artificially
construct control and experimental groups, with high education as the treatment variable and the annual personal income as the
outcome variable. The study shows that the net effect of education on income is the same for both urban and rural individuals. This
shows that China’s labour market recognizes education fairly.

Keywords


PSM ; ATT ; Logistic model ; Stratification matching

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References


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[4] Wu X, Zheng B. Household registration, urban status attainment, and social stratification in China[J]. Research in Social Stratification and Mobility, 2018, 53: 40-49.

[5] Chunling L. Social and Political Changes and Inequality in Edu-cational Opportunities: On the Impact of FamilyBackground and Institutional Factors on Educa-tional Attainment (1940-2001)[J]. 2003.




DOI: http://dx.doi.org/10.18686/ahe.v6i16.5255

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