A Statistical Analysis Of Income Difference Between Graduates Of Technical Colleges And Universities

The problem between education and employment has always been a hot topic for majority of scholars. The return to education, not only because it is a core content of labor economics, but also it can give a good presentation of causal effect of education on personal income, makes researchers have a great interest on it although time goes on. In our country, on the one hand, many universities expand continuously and the proportion of university students is increasing, resulting in grim employment situation.On the other hand, social recognition of technical colleges is low, the purpose of which is to cultivate professional and technical personnel. And technical colleges have much difficulty to enroll students, resulting in huge gap of company. In this situation,this paper take an analysis of personal occupational income difference between graduates of technical colleges and universities on the basis of China General Social Survey (CGSS) data.In model construction, based on the Rubin Causal Model, take instrumental variable approach in order to overcome endogeneity of explanatory variables.According to the different level of education, individuals are divided into treatment group and control group, which treatment group members for technical college graduates, including technical schools and secondary schools, and control group members for university graduates. Then the output result of instrumental variable estimator under 2SLS method is obtained by Stata, that is, causal effect. In estimation,rule out the possibility of autocorrelation, heteroskedasticity and weak instrumental variables. After that, it is estimated that the level of personal occupation income of technical college graduates is 26.4% lower than that of university graduates in 2012 and the number is 17.7% in 2013 on average by data of 2012 and 2013, and the income gap between the two is obviously narrowing. Finally, on basis of this research results, give conclusions, discuss reasons of this phenomenon, and put forward a number of suggestions in some aspects.