Effect of Introduction of Compulsory Education Law on the Rate of Return to Education
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Haobin Wang, Zhuoxuan Liu, Tingting Gan
based on the data from China general social survey (cgss). Using method of DID and regression discontinuity to compute the influence on the returns to education due to Law on Compulsory Education. The results are various and the OLS regression simply indicates that the rate of return to education in china is only 5.24%. The DID model estimate that one more year of study in school will increase salary by 6.8%.However,the result of Regression Discontinuity design is that the rate of return to education surprisingly reaches to 46%.
Development economics, return to education (RTE), Regression Discontinuity, DID