Changes In Returns To Education Of Anhui Province

Since reform and opening up, inequality of income had become increasingly prominent. The factors leading to this phenomenon are many, of which education is the important factors. Education, as a manifestation of the impact of human capital generated by the expansion of inequal income, is one of the causes of the gap. Therefore, studying education returns ratio will help us not only understand widening income inequality, but understand mechanism to explain the configuration of personnel and labor market efficiency wage is also comprehensively and profoundly. As China’s Agricultural iconic central province, Anhui province data analysis has high reference value. Education is the case of the reaction yield return on investment. Through education yields we find the ratio of return on investment in education, which will help us to adjust the amount of investment in education. In addition, China’s economy is in transition phase, it exits a lot of economic problems, which can be used to educate the yield of the index reference study. Moreover, our country covers a large area, the distribution of resources and social development is very imbalanced. Therefore, the status and trends of educational research can yield for our contributions to the theory of economic transformation. In addition, education as an investment, its purpose is to get in return, and the return of many naturally affects how much investment. Of urban and rural education yield analysis and comparison of test incomes policy, education policy and urban and rural employment policies related gains and losses helpful.In this paper, Mincer revenue model to analyze the yield from1998to2008in Anhui multiple years of education in urban and rural areas, in the model estimation process, the paper summarizes previous experience, the use of means method to correct for measurement error and a detailed analysis of this article and return to education at different educational levels of Anhui Province, analyzes the current situation of education and better income Anhui. Education yields different levels of education is an important indicator to adjust the structure of educational investment. Anhui Province is almost never done on previous research in this area, which makes it very lack of Anhui data in this regard, this study complements this defect.When used herein, the unified education yield estimation model to estimate Mincer income.to estimate the rate of return to education are many ways, however, for education yields the most thorough explanation or Mincer revenue model is now being used to estimate education yields. In addition, according to CHIP data which were used in this paper, as well as the theoretical basis of this paper to choose, Mincer revenue models are most appropriate. The data used in this article can be a good use Mincer revenue model to estimate the rate of return to education, However, it can not meet the requirements to estimate the present value of the income method, the ratio method and the internal revenue laws and other methods. In addition to using Mincer revenue model can better explain the theoretical education yields.The study concluded that:Anhui education yields with reform and opening up and rapid economic development, the overall upward trend, in front of the twenty-first century, slower growth, the growth rate of the twenty-first century improved significantly, different levels of income inequality degree level of education is increasing; Meanwhile, the yield gap between the education of residents affected by the different levels of education among also expanded. Levels of education increased the speed of return to education in the twenty-first century after significantly accelerated. In addition, data for urban and rural contrasts drawn, rural incomes and education levels had a rapid growth rate compare with the town, but the overall level is still below the town, especially the larger gap between the level of education and urban; various levels educational gains in education levels and lower rates with towns, compared with residents affected by the gap in education levels improve gradually decreases.This paper argues that income inequality will result in unequal educational opportunities, which affects people’s level of education, and different levels of education and income distribution would have a huge impact. To solve the problem of unequal distribution of income, it provides opportunity to access education is a feasible from income distribution point of view. In this paper the results showed that to increase public investment in education is the fundamental way to narrow the income gap Firstly, Then, increase the preferential policies for low-income families and improve their educational conditions. Further improving the structure of public investment in education better meet the changing needs of the labor market.