Dissertation > Economic > Economic planning and management > Labor Economics > Countries in the world of labor economic profile > China

Study on the Influence and Countermeasure of the Disparity between the Income Impressed by the Unequal Opportunity of Education

Author LiXiangJun
Tutor ZhaoXiuYu
School Chongqing University
Course Industrial Economics
Keywords Income Gap Rate of Return to Education Educational Opportunity Educational Expansion
CLC F249.2
Type Master's thesis
Year 2007
Downloads 425
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The gap between personal income and distribution is expanding incessantly since the economic reform, the causation are multi-phasic, that education has become a source of social imparity and stratification in knowledge-based society. The unequal disparity opportunities in education, which in turn lead to the unequal chances of success opportunities in education among the starting point of employment, the posts of employment, and the treatment of the employment. This paper takes the factor of educational into consideration and points out that this factor mainly acts on income gap its effects on human capital stock, thus results in income gap competition system in the market.Using the latest survey dataset, we estimate the rates of return to education on the base of the basic Mincer-Type earning function for urban and rural labor, respectively. The regression results and statistic estimates show a few findings: Mincerian rate of return to education has a remarkable rising trend in recent years. The higher the education level is the bigger the rate of return to education is. The education has remarkable impacts on individual income.This paper points out that there is a positive interrelation between the inequality in educational opportunity and the enlarging income gap, that is, the more unequal the educational opportunity is, the larger the income gap will be. Because of the possible vicious circle between the inequality in educational opportunity and the enlarging income gap, it is a necessity for, the government to distribute educational opportunity equally, change the unfairness for the unprivileged group, increase their human capital investment and thus make all the equally gifted man get equal opportunity to develop.In addition this paper also dissertation makes an analysis of the influence of educational expansion on income distribution, and two medi-variables have been discussed concerning the mechanism of this influence: educational distribution and rate of return to education. This research has found that the relationship between educational expansion and income distribution in China is of inverted-U type, educational expansion will widen income inequality in early days, but when the education attainment reaches some level, educational expansion will reduce income inequality.

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