Economic Globalization And The Difference In Returns To Education

The difference between education return area guides the flow of labor of different education levels.On the one hand,the coastal developed cities still is the preferred ideal for college graduates employment,on the other hand,The low level of the migrant workers in education has returned to the mainland in a large scale,and the number of migrant workers continues to decrease across the province.There are even "shortage of migrant workers" in many places.Obviously,Economically developed regions are far more attractive to the high education workforce than the average worker.There are reasons to doubt that the developed world offers a higher return on education.Scholars have realized that Labour mobility has been affected by the difference in the rates of education,but there is little literature to explore the possible mechanism.Shen GuangJun etc.(2015)based on "capital-labor" complementary model,this paper concluded that the return on education positively related to the level of regional financial development.Obviously,in addition to the financial market development level is higher,the developed areas of economic activity in other ways,especially into the global integration degree is in a leading position.Economically developed regions are provide more richly rewarded for human capital investment,with its deep is closely related to the degree of participation in economic globalization.This paper quantitatively examines the relationship between economic globalization and the difference of rate of return on education.Using extended Mincer equation,the authors use areas involved in economic globalization degree of interaction with the individual education level,depicting the former's influence on education returns.Based on CFPS2010 data,this paper found the empirical evidence of economic globalization improve education returns.(1)The ratio of imports and exports to GDP is a measure of economic globalization,if a provincial administrative region to participate in the economic globalization degree every one standard deviation(0.487),the return on education is expected to rise nearly 1.4%,or increased by 19%.Later,after a series of control variables by increased robust estimation results show that the education of interaction with the economic globalization both coefficient and significance level,to a certain extent,to keep the stability.(2)The higher the education workforce,the more likely it is to move to higher levels of economic globalization.Quantile regression results show that the economic globalization to promote education returns,mainly reflected in the workers with higher income groups.In this paper,through a variety of ways to ensure the robustness of research conclusion.First of all limit subsample sensitivity analysis of different ages;second use different indicators measure individual income level,the degree of economic globalization and education level;Third use fixed number of year of the parents education for their children's education of instrumental variables and the use of capital of provincial-level administrative region or the distance to the sea port as the economic globalization,capital of tools to deal with education level and economic globalization are variables of endogenous problems;For a large number of sample self-selection problems that are likely to be caused by observations of a large number of income variables that are still working age but are not observed,the article use Heckman selection model to deal with;Finally,regression analysis based on CFPS2014 data again.The results of various robustness tests show that the economic globalization has a positive effect on the regional education rate of return,and its estimated coefficient and significance level remain stable to a considerable extent.The marginal contribution of this paper is to investigate the effect of economic globalization on the rate of return on education.About the impact of economic globalization and its economic consequences literature is immense,But few studies have focused on its relationship with education.The author's research will help to improve the understanding of the interactive relationship between economic development pattern and factor accumulation,and provide a new explanation for the structural differences in the direction of labor flow in China.And according to the above conclusions,this paper puts forward the corresponding policy Suggestions: strengthen the degree of personal education,effectively relieve the contradictions of employment structural;Promote the process of economic globalization,vigorously the introduction of foreign technology and funds;Increase in the central and western regions to participate in the close degree of economic globalization.