The Causal Effect of High Education on Individuals’ Income in Rural and Urban China
Abstract
Children’s education has been a hot topic in China in recent years. To explore the causal impact of education on earnings, this paper uses the PSM method in the counterfactual framework. The paper uses CGSS observational data to artificially construct control and experimental groups, with high education as the treatment variable and the annual personal income as the outcome variable. The study shows that the net effect of education on income is the same for both urban and rural individuals. This shows that China’s labour market recognizes education fairly.References
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