Economic consequences of horizontal stratification in postsecondary education: evidence from urban China

Drawing on nationwide representative data, we study the patterns of horizontal stratification of higher education in contemporary urban Chinese society, examining how college major, location, and ranking affect college graduates' occupational income and the likelihood of assuming a managerial position. The results suggest that (1) college major differentiates graduates' occupational income, with STEM and professional majors having significant economic advantages. (2) College ranking is significantly correlated with the likelihood of assuming a managerial position, implying that college ranking is an effective signal of prestige to employers in urban China. (3) A "Big City Effect" is detected as college location is significantly associated with salary levels after controlling for job location. This study adds an Eastern case to the literature on education stratification. Theoretical implications of empirical findings are also discussed.