The Difference Of Returns To Education In And Among Different Ownership Sectors

Since the reform and opening, China has gradually formed the stage that public ownership is dominant and diverse forms of ownership also develop at the same time. With the development and improvement of market economy, China's institution of ownership shows different characteristics with other countries, determination mechanisms of wage are also different among different forms of ownership. Under the background that labor wage is obviously different among sectors of different ownership, this article analyzes the key factors to labor wage in different sectors, using micro data, to explore mechanisms of labor wage in sectors of different ownership and developing condition of China's labor market.This paper based on human capital theory clarifies the impact of education level on wage by exploring rate of return to education in different ownership sectors. This paper uses CHNS data in 2006 and makes micro-level statistical analysis to wage and factors affecting wage. According to ownership, we divide labor in the investigation to three categories:state-owned sector, collective sector and private sector. We also divide the labor to three stages according to age:under the age of 35, 35 to 44 year-old, over 45 year-old. The reason we divide labor by age is that education levels of different age stages do not have the same impact on wage because they have different ways to enter the workplaces. Dividing labor by age, it is more targeted when we compare them separately. Introducing control variables of gender and registered residence, we use the extended Mincerian earnings function model to do OLS regressions of the three departments, and three age groups respectively.The results show that:workers'return of education in state-owned sector are higher than that of the other two sectors; return of education of younger and older workers are higher than that of middle age workers.