Research On Returns To Education

According to human capital theory, education investment can effectively improve e labor income of workers, and the difference in education investment is an iportant reason for the income distribution gap. So, the calculation on the return to lucation offers an important perspective on the research of labor market mechanism id resident’s income distribution.A lot of research in this area calculated the return to education of a certain year id a few research focused on the changing trend of this for a period of time, mostly n 1990s’to 2000s’. Meanwhile, the improvement of calculation method has been iscussed a lot recently but we can hardly find a systematical calculation which use nproved method and focus on recent period of time.Based on this fact, this thesis calculates the return to education for the period of 002-2007 and analysis it’s changing trend, using the urban household survey (UHS) ata of China during this period. Besides, this thesis uses Heckman two step stimation and Quantile regression models for the improvement on the calculation. his thesis concluded that the return to education has increased in this period and the ifferences in education and area caused the income distribution. This thesis offers a esult which reflects China’s recent return to education and its changing trend more ystematically and with this result it offers some suggestions on how to modify the abor market mechanism.This thesis suggested that we should pay more attention on the positive impact of ducation, especially on the education improvement in less developed area. What’s nore, we should try all kinds of ways to balance the residents’income.