Does attending elite colleges pay in China?

We estimate the return to attending elite colleges in China using 2010 data on fresh college graduates. We find that the gross return to attending elite colleges is as high as 26.4%, but this figure declines to 10.7% once we control for student ability, major, college location, individual characteristics, and family background. The wage premium is larger for female students and students with better-educated fathers. We also find that the human capital and experiences accumulated in elite colleges can explain almost all the wage premium.

► We estimate the return to attending elite colleges in China using 2010 data on fresh college graduates. ► We find that the gross return to attending elite colleges is 10.7%. ► The wage premium is larger for female students and students with better-educated fathers. ► We also find that the human capital and experiences accumulated in elite colleges can explain almost all the wage premium.