Topic: College Expansion and Heterogeneous College Premiums: Evidence from the Marginal Treatment Effect in China
Time: Thursday 17 November 2022, 11:00 am - 12:30 pm
Venue: Conference Room 119, Wenqin Building
Moderator: Dr. Wan Xin
Keynote Speaker: Associate Professor YAN Weibo
Professor Yan is an associate professor at the School of Public Finance and Taxation, Zhongnan University of Economics and Law, and a joint PhD from Xi'an Jiaotong University and the University of California, Berkeley. His main research interests are in public economics and labour economics. He has published in journals including Economic Research Journal, World Economy, Journal of Financial Studies, Statistical Studies, Economics of Transition and Institutional Change.
Abstract:
Based on the heterogeneous education return framework, this paper estimates the marginal treatment effect of college expansion on college premiums in China. Our findings are triple. First we capture heterogeneous college premiums after college expansion, especially in urban areas and provinces with abundant education resources. Second the treatment effects follow a quantitative sequence of ATT (Average Treatment Effect on Treat ed)>LATE(Local Average Treatment Effect)>ATE (Average Treatment Effect)>TNT(Average Treatment Effect on Non-Treated) which reconciles the puzzle that instrumental-variable estimates are always larger than ordinary-least-square estimates in the literature. Due to the heterogeneous education returns, college premiums for compliers decline after college expansion. Third, by evaluating several potential education policies, we find that policies aiming at enhancing the college entrance probability by a proportion are ineffective and will even lead to resource misallocation This paper furthers our understanding of education premiums and sheds new light on the quality mechanism governing the effect of college expansion on college premiums.