Returns to education in China a Recently, economists have started to estimate the return to education using Chinese data a Early studies find rather low returns: 2-4%0 (Byron and Manaloto, 1990; Meng and Kidd, 1997) Economists, including heckman believe that the return should increase with economic transition Indeed. recent data show larger returns: 7-10 (Heckman and Li, 2004; Zhang et al., 2005)5 Returns to education in China ◼ Recently, economists have started to estimate the return to education using Chinese data ◼ Early studies find rather low returns: 2-4% (Byron and Manaloto, 1990; Meng and Kidd, 1997) ◼ Economists, including Heckman, believe that the return should increase with economic transition ◼ Indeed, recent data show larger returns: 7-10% (Heckman and Li, 2004; Zhang et al., 2005)