Education
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Because higher education serves both public and private interests, the way it is conceived and financed is contested politically, appearing in different forms in different societies. What is public and private in education is a political–social construct, subject to various political forces, primarily interpreted through the prism of the state. Mediated through the state, this construct can change over time as the economic and social context of higher education changes. In this paper, we analyze through the state’s financing of higher education how it changes as a public/private good and the forces that impinge on states to influence such changes. To illustrate our arguments, we discuss trends in higher education financing in the BRIC countries—Brazil, Russia, India, and China. We show that in addition to increased privatization of higher education financing, BRIC states are increasingly differentiating the financing of elite and non-elite institutions.

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Higher Education
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Prashant Loyalka
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Assessing student learning outcomes has become a global trend in higher education. In this paper, we report on the validation of the Chinese HEIghten® Critical Thinking assessment with a nationally representative sample of Electrical Engineering and Computer Science students from 35 institutions in China. Key findings suggest that there was a test delivery mode effect favoring the paper tests over the online tests. In general, the psychometric quality of the items was satisfactory for low-stakes, group-level uses but there were a few items with low discrimination that awaits further investigation. The relationships between test scores and various external variables such as college entrance examination scores, university elite status and student perceptions of the test were as expected. We conclude with speculations on the key findings and discussion of directions for future research.

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Higher Education Research & Development
Authors
Huan Wang
Prashant Loyalka
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This paper empirically estimates the return to education using twins data that the authors collected from urban China. Our ordinary least-squares estimate shows that one year of schooling increases an individual's earnings by 8.4%. If we use a within-twin fixed effects model, the return is reduced to 2.7%, but rises to 3.8% after the correction of measurement error. These results suggest that a large portion of the estimated returns to education is due to omitted ability or the family effect. We further investigate why the true return is low and the omitted ability bias high, and find evidence showing that it may be a consequence of China's education system, which is highly selective and exam oriented. More specifically, we find that high school education may mainly serve as a mechanism to select college students, but as a human capital investment per se it has low returns in terms of earnings. In contrast, both vocational school education and college education have a large return that is comparable to that found in the United States.

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Journal of Development Economics
Authors
Hongbin Li
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We estimate the return to attending elite colleges in China using 2010 data on fresh college graduates. We find that the gross return to attending elite colleges is as high as 26.4%, but this figure declines to 10.7% once we control for student ability, major, college location, individual characteristics, and family background. The wage premium is larger for female students and students with better-educated fathers. We also find that the human capital and experiences accumulated in elite colleges can explain almost all the wage premium.

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Journal of Comparative Economics
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In the 1990s, rural youth from poor counties in China had limited access to college. After mass college expansion started in 1998, however, it was unclear whether rural youth from poor counties would gain greater access. The aim of this paper is to examine the gap in college and elite college access between rural youth from poor counties and other students after expansion. We estimate the gaps in access by using data on all students who took the college entrance exam in 2003. Our results show that gaps in access remained high even after expansion. Rural youth from poor counties were seven and 11 times less likely to access any college and elite Project 211 colleges than urban youth, respectively. Much larger gaps existed for disadvantaged subgroups (female or ethnic minority) of rural youth from poor counties. We also find that the gaps in college access were mainly driven by rural–urban differences rather than differences between poor and non-poor counties within rural or urban areas.

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The China Quarterly
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Prashant Loyalka
Scott Rozelle
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In this paper, we consider the sources and prospects for economic growth in China with a focus on human capital. First, we provide an overview of the role that labor has played in China's economic success. We then describe China's hukou policy, which divides China's labor force into two distinct segments, one composed of rural workers and the other of urban workers. For the rural labor force, we focus on the challenges of raising human capital by both increasing basic educational attainment rates as well as the quality of education. For the urban labor force, we focus on the issues of further expanding enrollment in college education as well as improving the quality of college education. We use a regression model to show the typical relationship between human capital and output in economies around the world and demonstrate how that relationship has evolved since 1980. We show that China has made substantial strides both in the education level of its population and in the way that education is being rewarded in its labor markets. However, as we look ahead, our results imply that China may find it impossible to maintain what appears to be its desired growth rate of 7 percent in the next 20 years; a growth rate of 3 percent over the next two decades seems more plausible. Finally, we present policy recommendations, which are rooted in the belief that China continues to have substantial room to improve the human capital of its labor force.

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Journal of Economic Perspectives
Authors
Hongbin Li
Prashant Loyalka
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In Taiwan, thousands of students from Yuanzhumin (aboriginal) families lag far behind their Han counterparts in academic achievement. When they fall behind, they often have no way to catch up. There is increased interest among both educators and policymakers in helping underperforming students catch up using computer-assisted learning (CAL). The objective of this paper is to examine the impact of an intervention aimed at raising the academic performance of students using an in-home CAL program. According to intention-to-treat estimates, in-home CAL improved the overall math scores of students in the treatment group relative to the control group by 0.08 to 0.20 standard deviations (depending on whether the treatment was for one or two semesters). Furthermore, Average Treatment Effect on the Treated analysis was used for solving the compliance problem in our experiment, showing that in-home CAL raised academic performance by 0.36 standard deviations among compliers. This study thus presents preliminary evidence that an in-home CAL program has the potential to boost the learning outcomes of disadvantaged students.

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Sustainability
Authors
Scott Rozelle
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Policymakers in developing countries have prioritized the mass expansion of vocational education and training (VET). Evidence suggests, however, that the quality of VET can be poor. One possible reason given by policymakers for this is a lack of resources per student. The goal of this study is to examine whether the quality of VET in developing countries increases by investing greater resources per student. To achieve this goal, we examine the impacts of attending model schools (which have far more resources per student) compared with non-model schools (which have fewer resources) on a range of student cognitive, non-cognitive, and behavioral outcomes. Using representative data from a survey of approximately 12,000 VET students from China, multivariate regression and propensity score matching analyses show that there are no significant benefits, in terms of student outcomes, from attending model vocational high schools, despite their substantially greater resources.

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China & World Economy
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Prashant Loyalka
Scott Rozelle
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The demand for large-scale assessments in higher education, especially at an international scale, is growing. A major challenge of conducting these assessments, however, is that they require understanding and balancing the interests of multiple stakeholders (government officials, university administrators, and students) and also overcoming potential unwillingness of these stakeholders to participate. In this paper, we take the experience of the Study of Undergraduate Performance (SUPER) in conducting a large-scale international assessment as a case study. We discuss ways in which we mitigated perceived risks, built trust, and provided incentives to ensure the successful engagement of stakeholders during the study’s implementation.

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Journal of Higher Education Policy and Management
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Prashant Loyalka
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We examine the effects of computer-based versus paper-based assessment of critical thinking skills, adapted from English (in the U.S.) to Chinese. Using data collected based on a random assignment between the two modes in multiple Chinese colleges, we investigate mode effects from multiple perspectives: mean scores, measurement precision, item functioning (i.e. item difficulty and discrimination), response behavior (i.e. test completion and item omission), and user perceptions. Our findings shed light on assessment and item properties that could be the sources of mode effects. At the test level, we find that the computer-based test is more difficult and more speeded than the paper-based test. We speculate that these differences are attributable to the test’s structure, its high demands on reading, and test-taking flexibility afforded under the paper testing mode. Item-level evaluation allows us to identify item characteristics that are prone to mode effects, including targeted cognitive skill, response type, and the amount of adaptation between modes. Implications for test design are discussed, and actionable design suggestions are offered with the goal of minimizing mode effect.

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Assessment & Evaluation in Higher Education
Authors
Prashant Loyalka
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