Abstract

This paper utilizes data from the 2002 Chinese Household Income Project to estimate the labor market return to graduating from college relative to high school. Parameter estimates of heterogeneous treatment effects reveal that for minorities, the average treatment effect of earning a baccalaureate degree from colleges/universities ranked good and very good is high relative to the Han majority, and for those actually receiving the treatment from colleges/universities ranked good. Our findings suggest that the mismatch hypothesis cannot be viewed as a universal phenomenon that renders affirmative action in college/university admissions an ineffective policy tool to redress/remedy historic discrimination against minority groups.

Highlights

  • Much discussion concerning the efficacy of affirmative action in college and university admissions focuses on the United States

  • As in Heckman and Li (2004), we consider a potential outcomes specification of a Mincerian earnings equation of the form lnYi = βiSi + γXi + Ui, where Yi is a measure of earnings, Si = 1 for individuals with a baccalaureate degree and Si = 0 if an individual is a high school graduate, βi is the heterogeneous return to education, Xi is a vector of conditioning variables with effects given by the vector γ, and Ui is an error term

  • This paper considers the extent to which such a policy has been effective, and if conditional on college/university quality, the labor market returns to a baccalaureate degree varies by ethnicity in China

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Summary

Introduction

This paper offers a unique perspective by examining the effects of affirmative action on ethnic minority earnings in China. Despite post-1978 reform efforts to modernize the economy, most evidence suggests that ethnic minorities lag behind the Han majority in educational attainment (Myers et al 2013). In her consideration of how educational attainment in China is stratified by ethnicity, Hannum (2002) indicates that one reason why an ethnic minority relative to Han majority educational attainment disparity exists may be due to ethnic minority groups perceiving that the tangible returns to education may be low.

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