Individual heterogeneity in returns to education in urban China during 1995-2002

This paper analyzes the individual-level differences in returns to education in urban China from 1995 to 2002. We have uncovered substantial heterogeneity in schooling coefficients, and we find that the extent of heterogeneity diminishes over time.

► We analyze the individual heterogeneity in returns to education in urban China. ► Substantial heterogeneity has been found for both genders from 1995 to 2002. ► The heterogeneity diminishes over time as labor market becomes more functioning.