Academic Education In China Over The Analysis

In recent years, China has increased enrollment of higher education, which has become a major focus of attention for a common social and academic. Beginning in 1999, China continues to expand the scale of higher education enrollment. Number of students enrolled in 1998 to 1．08 million people as a base, from 1999 to 2001, the average annual increase is 35．4% on the actual enrollment. The gross enrollment rate in higher education rose from 7．2% in 1995 to 10．5% in 1999, 17% in 2003, to reach 21% in 2005．Popularization of higher education has entered a phase of the internationally recognized. However, as college graduates have gradually come out, the problem of "difficult employment" they have faced are increasingly evident. Despite the difficult employment situation of college students is the result of multiple factors, such as the economic development of industrial restructuring, system which has not been fully implemented, the higher education system which has its own reasons, the concept of employment of college students and so on. Rapidly increased enrollment of universities and colleges is not the fundamental reason for "difficult employment", but college enrollment really has a definite impact on the employment of students. Students in the short-term rapidly increasing makes the situation that the supply exceeds the demand due to the situation has not changed substantially in demand. The oversupply situation makes a balanced reduction in the number of employment, and a balanced reduction of wage level. To gain the upper hand in the job market, many students choose taking tests for qualified certificates or for further education. Then the job market makes the "threshold" on academic credentials for improvement. Meanwhile, students employed by Enterprises have to lower the standard of employment, which has resulted in "devaluation diploma". The regional over-education in China has emerged, which can be drawn from the meaning of over-education. Chinese scholars who based in sociology and education study these problems numerously, and the results are fruitful. But from an economic point of the study is rare. Theoretical study on the job market signaling is even rare.The theory of the job market signaling as an application in the labor market which developed by Spence, and founded in the 1970s , focused on the influence of education as a signal on the asymmetric information and equilibrium of the labor market, expounding the informational role of education from the perspective of signaling. Education as an important signal to the labor market, it can not only raise human capital, but also be used as a signal of individual capacity to save the market equilibrium in the condition of information asymmetry by the insiders (employees) sending out signals and the uninformed (employers)distinguishing signals. The study is closer to the real world which we are living in, especially in China it might be more meaningful. Because the economy of China is still in a transitional period, the development of the market economy is still room for improvement, and labor market information asymmetry problem may become more serious .This theory could reasonably explain the seemingly contradictory phenomena of the labor market of China: on one hand, there are lots of undergraduate and graduate students in the labor market, and they are constantly reducing employment standards, as employers continue to increase employment threshold; Meanwhile, although the students have difficulties in employment, however, it has continued for many people to strengthen the incentives for investment in University, for a "taking tests fever" and the pursuit of higher education, while people also showed great enthusiasm to some special aptitude certificates except those academic diploma certificate.Based on the theory of the job market signaling, after the analysis of the phenomenon that the increased enrollment of universities and colleges in China has great influence on investment in education, the following conclusions were drawn: (1) Increased enrollment will enlarge the range of the pooling equilibrium of bachelors' degree signals, that is, the bachelors' degree signaling will be weaken or the undergraduate diploma will depreciate. Then the higher ability undergraduate students will pursue higher education to be distinguished from others. (2) Expansion of higher learning raises the educational level of the equilibrium separation, which is to improve the employment threshold;(3) Due to the depreciation of diploma, the high-capacity students in addition to the further investment in education, they also choose other investment options, such as the pursuit of more prestigious schools, special aptitude certificates, honor and other multidimensional signals to reflect their individual capacities. On the basis of above analysis, there are a few policy recommendations: (1) do some work in terms of improving symmetric information of the labor market problems;(2) the state's macroeconomic control on the size of college enrollment and increase in public expenditure on education;(3) reduce the high cost of education; (4) improve the extent of competition in the education market, and the labor market, and make school education more in line with actual production.