Reward for Jumping the Dragon Gate: The Earnings Effect of Attending Selective Colleges in China

• In Event: Roundtable Session 5
  In Roundtable Session: After Undergraduate Studies: Earnings Effects, Postbaccalaureate Aspirations, and Career Outcomes for Faculty

Abstract

We estimate return to attending first versus second-tier or third-tier of higher education institutions in China using propensity score matching. We find attending the first versus second-tier or third-tier universities can significantly increases annual earnings by 8-11%. However, there is no significant difference in returns to degrees conferred by second- and third-tier institutions. The returns are also higher for male and STEM major students. The driving force may be an extremely high return for attending the most selective institutions. Among first-tier universities, graduates from Project 985 or Project 211 institutions earn 18.1% more than those from third-tier ones, while the earnings premium for other graduates from the rest of first-tier institutions is only 6.6% on average.

Author

• Po Yang, Peking University