Migration is one of the main ways of alleviating poverty in developing countries, including China. However, there are concerns about the potential negative effects of migration on the educational achievement of the children that are left behind in villages when one or both of their parents out-migrate to cities. This paper examines changes in school performance before and after the parents of students out-migrate. Surprisingly, we find that there is no significant negative effect of migration on school performance. In fact, we find that educational performance improves in migrant households in which the father out-migrates.

Previous studies have found that the returns to education in rural China are far lower than estimates for other developing economies. In this paper, we seek to determine why previous estimates are so low and provide estimates of what we believe are more accurate measures of the returns. Whereas estimates for the early 1990s average 2.3 percent, we find an average return of 6.4 percent. Furthermore, we find even higher returns among younger people, migrants, and for post-primary education. The paper demonstrates that, although part of the difference between our estimate and previous estimates can be attributed to increasing returns during the 1990s, a larger part of the difference is due to the nature of the data and the methodological approaches used by other authors.