Gender differentials in the payoff to schooling in rural China

Abstract

This article examines the gender differential in the payoff to schooling in rural China. The analyses are based on a framework provided by the over education/required education/under education literature, and the decomposition developed by Chiswick and Miller (2008). It shows that the payoff to correctly matched education in rural China is much higher for females than for males. Associated with this, the wage penalty where workers are under qualified in their occupation is greater for females than for males. Over educated females, however, are advantaged compared with their male counterparts. These findings are interpreted using the explanations offered for the gender differential in the payoff to schooling in the growing literature on earnings determination in China.