Human Resources in China: The Birth Quota, Returns to Schooling, and Migration

Rural elderly have 40% of the income of those in urban areas, spend a larger share of their income on food, are in worse health, work later into their lives, and depend more on their children, lacking pensions and public services. The birth quota since 1980 has particularly restricted the childbearing of rural less educated women, who now faceretirement with fewer children for support. Inequality in China is also be traced to increasing returns to schooling, especially beyond secondary school. Government restrictions on rural-urban migration reduces national efficiency, adds to the urban-rural wage gap, and increases inequality.Human Capital Returns, Rural-Urban Migration, Elderly Poverty, China

Class Origin, Family Culture, and Intergenerational Correlation of Education in Rural China

This paper examines the intergenerational correlation of education in rural China. The focus is on the influence of family class origin (jiating chengfen), the political label hung on every family throughout the Maoist era. A nationally representative cross-sectional household survey for 2002 is used. It is shown that the effects of family class origin on family members' educational attainment varies across historical periods. Regarding the educational level of male heads of household with landlord/rich peasant background, we found a drop caused by the class-based discrimination in the Maoist era and a rebound in the postreform era. It was also found that family class origin remains significant for the educational achievement of the current younger generation. Children aged 16-18 who are of landlord/rich peasant and middle peasant origins are more likely to achieve higher educational attainment. We conclude that a class-specific, education-oriented family culture has been shaped first as a mixture of family cultural capital inherited from the pre-Maoist era and surfacing again in the postreform era, and, second, as intergenerational cultural reaction against class-based discrimination during the Maoist era.education, intergenerational correlation, class origin, family culture, social discrimination

Urban-Rural Consumption Inequality in China from 1988 to 2002: Evidence from Quantile Regression Decomposition

One of the most notable social phenomena in China is the large urban-rural disparity. There are many studies of it, but most of them focus on income or earnings inequality. In this paper, we investigate the consumption disparity between urban and rural households in China from 1988 to 2002. Our results suggest that low quantiles are associated with large consumption disparity. The price effect is the dominant factor for the urban-rural consumption disparity. This disparity increased significantly, both at mean and at every quantile, from 1988 to 2002. However, most of the increase happened from 1988 to 1995, and this increase was mainly from the higher growth rate of urban household consumption. Our results also suggest that rural-urban migration and improvement of the rural educational level are very helpful in reducing urban-rural disparity.inequality, consumption, quantile regression decomposition, China

Educational inequality in China: The intergenerational dimension

Chapter from: 'Rising Inequality in China: Challenge to a Harmonious Society', edited by Shi Li, Hiroshi Sato and Terry Sicular

Three Generations of Changing Gender Patterns of Schooling in the People\u27s Republic of China

The phenomenon of son preference in the People’s Republic of China and throughout much of Asia has been well documented. However, changing economic conditions, such as increases in educational attainment and employment opportunities for women and the rise in the prevalence of one-child families, have likely changed the incentives for parents to invest in daughters. In this paper we take advantage of data spanning three generations of Chinese families to examine the evolution of educational attainment for boys and girls and importantly the relative levels of schooling of each gender. We also use variation in the timing of compulsory schooling laws and the implementation of the one-child policy to assess the effect of these policy measures on the relative educational levels. We find a substantial narrowing of the gap between the schooling of boys and girls, so much so that girls now have more schooling on average than boys. In addition, public policy initiatives had a larger effect in rural than urban areas

Irrigation, poverty and inequality in rural China

This paper examines the impact of irrigation on rural incomes, poverty and the income distribution in rural China. The relationship between irrigation and income is examined using descriptive statistics and multivariate analysis. A simulation approach is used to explore the impact of irrigation on poverty incidence. To uncover the effect of irrigation on the income distribution, inequality is decomposed by source of income, by group according to access to irrigation and by estimated income flows as a result of specific household characteristics. The results show that irrigation increases income and reduces poverty and inequality.income, inequality, irrigation, poverty, rural China, Community/Rural/Urban Development, Food Security and Poverty,

In Search of a Better Life: The Occupational Attainment of Rural and Urban Migrants in China

This paper investigates the occupational attainment and job mobility of permanent rural-to-urban migrants and compares them with migrants who were born with an urban hukou. Using data from the 2003 China General Social Survey, we examine how much of the gaps in occupational-prestige scores between rural- and urban-born migrants can be explained by differences in observable characteristics up to the time of migration. We find that, with controls for these characteristics, the difference in occupational attainment between rural and urban migrants becomes statistically insignificant or even positive for some subgroups. In contrast, our analysis of job mobility reveals that rural migrants are generally more mobile and also more likely to move to better jobs by changing work units, whereas urban migrants are more likely to be promoted within a work unit.

Metropolitan Trends and Challenges in China: The Demographic Dimension

Over the past century China has been transforming from a rural to an urban economy. In the course of this transition, significant regional variations have emerged in urban growth, with a gap forming between coastal and inland areas. This report focuses on Chinas metropolitan regions: Shanghai, Beijing, and Guangdong which are the most socioeconomically advanced regions in China. It is the first outcome of the joint IIASA and Beijing University project on "Regional Urbanization and Human Capital Projections for China," which focuses on demographic matters, and it will analyze the following major issues: What factors have contributed to the growth of Chinas metropolitan areas over the last two decades? What specific urbanization patterns occur in the transformation from a rural to an urban economy? How does demography drive the speed of urbanization, in particular, in the metropolitan areas? How is IIASAs multistate method used for urbanization projections and what are its advantages and disadvantages? What challenges will China face in the near future as a result of rapid metropolitan growth? This paper suggests that the growth of Chinese mega-urban regions will have knock-on effects at the global level in the medium term

Explaining Rising Returns to Education in Urban China in the 1990s

Although theory predicts that international trade will decrease the relative demand for skilled workers in relatively skill-deficit countries, in recent decades many developing countries have experienced rising wage premiums for skilled workers. We examines this puzzle by quantifying the relative importance of different supply and demand factors in explaining the rapid increase in the returns to education experienced by China during the 1990s. Analyzing Chinese urban household survey and census data for six provinces, we find that although changes in the structure of demand did reduce the demand for skilled workers, consistent with trade theory, the magnitude of the effect was modest and more than offset by institutional reforms and technological changes that increased the relative demand for skill.education, earnings, inequality, China