Study on Private Education Investment in China: Based on the Yield Rate of Personal Education

As the supplement of government education investments, private education investments not only can make up the quantity insufficient of government investments, but also can promote the quality of education investments. However, at present the private education investments in China are very insufficient. This paper, from the perspective of yield rate of personal education, aims to find out why in China the private education investments are insufficient. This paper, using the expanded-Mincerian personal yield rate method, estimates the yield rate of personal education in China, finding that the yield rate of Chinese individual education is lower than that of the international average level, which leads to the funding shortage in Chinese private education. The paper believes that the labor market reform is an important way to improve the yield rate of individual education and enlarge private education investments.