Abstract
In 1999, the higher education expansion policy is implemented by Chinese government. Along with the policy implementation, the number of college graduates increased greatly. It is thought the increase of labor supply in a short term may affect employment. Does the higher education expansion policy affect youth employment in China? Based on a quasi-natural experiment method, Chapter 8 provides the evidence on the issue. It indicates that the higher education expansion policy reduces the employment probability, and decreases the probability to become both regular workers and irregular worker for young college graduates. It seems like the policy implementation decreases the proportion of young college graduates in “good sector” for college graduates, and the negative effect of the policy on employment is greater for the group with urban registration than the group with rural registration.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
In China, college can be distinguished by two types—they are college with three school years, and university with four or five school years. In the study, we call these two types as “college” briefly.
- 2.
Based on NBS data (NBS 2016), the urban registered unemployment rate increased from 3.0% in 1996 to 4.3% in 2001. It should be noted that the actual unemployment rate was higher than the unemployment rate published by government.
- 3.
In China, college includes regular college and irregular college (such as the college which provides the education course at night, the college which provides the education course by television communication).
- 4.
For the impact of higher education expansion policy on wage, please refer to He (2009), Chang and Xiang (2013), Wang (2014), Yao et al. (2014), Gao and Smyth (2015), and Xia et al. (2016). In Eq. (8.1b). X also includes the interaction item of age dummy and year dummy, the interaction item of higher education graduation dummy and year dummy, and the interaction item of higher education graduation dummy and age dummy.
- 5.
In Eq. (8.1b), X also includes the interaction item of age dummy and year dummy variables, the interaction item of higher education graduation dummy and year dummy variables, and the interaction item of higher education graduation dummy and age dummy variables.
- 6.
Regional level variables are obtained from Chinese Statistics Yearbook in survey year.
- 7.
The proportion of higher education workers in the total population for China is 4.7% in 2000 and 10% in 2010 for China based on 2000 and 2010 Chinese Population Census.
References
Chang, J., & Xiang, J. (2013). Higher education expansion and return to college education. Chinese Journal of Population Science, 3, 104–111 (In Chinese).
De Meulemeester, J., & Rochat, D. (1995). A causality of the link between higher education and economic development. Economics of Education Review, 14(4), 351–361.
Gao, W., & Smyth, R. (2015). Education expansion and returns to schooling in urban China, 2001–2010: Evidence from three waves of the China urban labor survey. Journal of the Asia Pacific Economy, 20(2), 178–201.
He, Y. (2009). The changes of the rate of return to education: An empirical study based on the data of CHNS. Chinese Journal of Population Science, 2, 44–54 (In Chinese).
Knight, J., Deng, Q., & Li, S. (2017). China’s expansion of higher education: The labor market consequences of a supply shock. China Economic Review, 43, 127–141.
Li, F., Morgan, W. J., & Ding, X. (2008). The expansion of higher education, employment and over-education in China. International Journal of Educational Development, 28(6), 687–697.
Li, S., Whalle, J., & Xing, C. (2014). China’s higher education expansion and unemployment of college graduates. China Economic Review, 30, 567–582.
Lian, S. (2011). Ant tribe’ study: Problem, reference and policy. In C. Pan (Ed.), Annual report on the development of Chinese talents 2010. Beijing: Social Sciences.
Liu, C., & Armer, M. J. (1993). Education’s effect on economic growth in Taiwan. Comparative Education Review, 37(3), 304–321.
Ma, X. (2011). Immigration and labor market segmentation in urban China: An empirical analysis of income gaps between migrants and urban register workers. Japanese Journal of Comparative Economics, 48(1), 39–55 (In Japanese).
Ma, X. (2016). Economic transition and the determinants of self-employment in urban China: 2007–2013. Journal of Chinese Economic and Business Studies, 14(3), 279–307.
Ma, X., & Deng, Q. (2016). Economic transition and self-employment of migrants in urban China. Journal of Chinese Economic Studies, 13(1), 78–92.
Meng, X., & Zhang, J. (2001). Two-tier labor market in urban China: Occupational segregation and wage differentials between urban residents and rural migrants in Shanghai. Journal of Comparative Economics, 29(3), 485–504.
National Bureau of Statistics (NBS) of China. (2010). China statistical yearbook. Beijing: China Statistics Press.
National Bureau of Statistics (NBS) of China. (2016). China statistical yearbook. Beijing: China Statistics Press.
Song, L., & Appleton, S. (2006). Urban laid-off workers versus rural migrants: Sectoral choice and job-search. In F. Cai & N. Bai (Eds.), Labor migration in transition China. Beijing: Social Science Academic Press (In Chinese).
Trow, M. (1972). The expansion and transformation of higher education. International Review of Education, 18(1), 61–84.
Trow, M. (1973). Problems in the transition from elite to mass higher education. Carnegie Commission on Higher Education.
Wang, G. (2014). The effects of increased supply of graduates on college wage premium. Studies in Labor Economic, 2(1), 152–165 (In Chinese).
Wang, M. (2005). Work chance and wage differentials in the urban labor market: Work and wage of migrants. Chinese Social Sciences, 5, 36–46 (In Chinese).
Wang, X., & Liu, J. (2011). China’s higher education expansion and the task of economic revitalization. Higher Education, 62, 213–229.
Wolf, A. (2002). Does education matter? Myths about education and economic growth. New York: Penguin Books.
Wu, Y., & Zhao, Q. (2010). Higher education expansion and employment of university graduates. Economic Research, 9, 93–108 (In Chinese).
Xia, Q., Wang, X., Li, S., & Zhou, H. (2016). The effects of China’s higher education expansion on income distribution. Social Science Front, 7, 54–65 (In Chinese).
Xing, C., & Li, S. (2011). Higher education expansion, education opportunity, and unemployment of college graduates. China Economic Quarterly, 10(4), 1187–1208 (In Chinese).
Yao, X., Fang, X., & Qian, X. (2014). The effects of higher education expansion on wage of college graduates. Population & Economics, 202(1), 67–79 (In Chinese).
Yao, X., Fang, X., & Zhang, H. (2013). Changes in economic return to schooling and employment rate with the expansion of higher education. Economic Issues in China, 277(2), 3–11 (In Chinese).
Yeung, W. J. (2012). Higher education expansion and social stratification in China. Chinese Sociological Review, 45, 54–80.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Ma, X. (2018). Impact of China’s Higher Education Expansion Policy on Youth Employment. In: Economic Transition and Labor Market Reform in China. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-1987-7_8
Download citation
DOI: https://doi.org/10.1007/978-981-13-1987-7_8
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-1986-0
Online ISBN: 978-981-13-1987-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)