Research On Differences Of The Returns To Higher Education In Different Ownership Enterprises

The research of the returns to higher education of enterprise in China is important to attract high-quality talent, improve productivity, and enhance the competitiveness of enterprises. It is also significant to guide university graduates to choose the occupation. The study summarized the development of different ownership enterprises (mainly including state-owned enterprises and private enterprises), analyzed of the advantages and disadvantages of the two types of enterprises, and compared the differences of the human capital management of the two kinds of enterprise. On this basis, I used1993,1997,2000,2004,2006survey data of the CHNS database and the extended model of the Mincer wage equation to estimate the returns to higher education in enterprises of different ownership. Then I analyzed the reasons for the trend and used the Multi nominal Logit model to analyze the2006data. The study found that, overall, the returns to higher education in China has been on an upward trend. The returns to higher education for the state-owned enterprises before2006have been higher than that of private enterprises. And private enterprise exceeds state-owned enterprises in2006. The estimate results of the data for2006means people of higher education are more likely to choose to enter the state-owned enterprises rather than the private enterprises which have higher returns to higher education.Based on the empirical results, we can obtain the following policy recommendations.(1) The state-owned enterprises should strengthen the understanding of human resources, to establish more in line with their actual performance appraisal system.(2) Private enterprises should recruit more fresh graduated, pay more attention to the internal personnel training and improve the incentive mechanism of the multi-channel.(3) Colleges and universities should improve the school size and resource management capabilities to overcome the disadvantage caused by the enrollment expansion of colleges. And government should have funded, and expand the autonomy of universities to make colleges and universities take into account the quantity and quality in admissions process. The school shall cultivate students' self-study ability to improve the students'quality.