An Empirical Analysis of Returns to Education Based on Simultaneous-equation Model - Discussing about Family Influences on Children in China

An empirical analysis is employed to study endogeneity bias on estimations of return to education in China by the database of “Synthesis Investigation of Living Status for Residents in Urban and Rural Regions (2005)” in CGSS, the followed results are approved: there exists a remarkable endogeneity bias on estimation of return to education in China, the same questions also have been discovered in estimating of turns to education for urban or rural residents, and modified estimations of return to education are given by simultaneous-equation model. It is also found that parents' educational attainment have significant and positive influence on children's educational attainment, while the father have much stronger influence on children than does mother in rural, by analyzing educational attainment explanatory equation.