This study provides the first set of estimates on schooling returns over a long
time span in urban China. There has been a dramatic and consistent increase
in returns to education in urban China. In 1988, the rate of return to
education was only 4.7%. By 1999, it has risen to 11.5%. Most of the rise in
returns to education occurred after 1992 and reflected in the wage premium
for college (or above) educated workers. The rise is consistently observed
across gender, experience groups, regions, ownership forms, and is robust to
adding other control variables.