The Expansion of Higher Education and the Returns of Distance Education in China

The returns of traditional face-to-face education are widely analyzed, but there is a need for empirical studies on the returns of distance education. Further, comparative studies on returns of both traditional and distance education using high-quality data are rare. Since 1999, continuous and rapid expansions have occurred in the whole Higher Education system in China. Given this background, what are the changes in returns of both traditional face-to-face education and distance education? This study analyzes the returns of both of these formats from 2003 to 2006 using the data from the China General Social Survey Open Database (Chinese General Social Survey [CGSS], 2018), adding educational background as a dummy variable to the Mincerian income equation. The empirical results show that Distance Higher Education can significantly increase the income of learners, the returns of distance education are lower than those of traditional face-to-face education and that from 2003 to 2006, the returns of distance education decrease dramatically.