Perceived returns to college education by ethnicity: Evidence from China

Ethnic minorities in China often experience poorer educational outcomes compared to the ethnic majority Han. However, certain minority groups, such as Mongolians, exhibit school attainment rivaling or surpassing that of the Han majority. This study investigates perceived returns to education as a potential factor contributing to ethnic differences in schooling outcomes. Drawing upon data from a 2019 household survey conducted in the Inner Mongolia Autonomous Region, the paper leverages specially designed survey instruments based on vignette questions to capture respondents' ethnicity-specific perceived returns to college education. It finds that Mongolian respondents perceive significantly higher returns to education when the vignette person has a Mongolian name. This result remains robust after accounting for sample attrition issues. The finding establishes a strong correlation between perceived returns to education and educational outcomes in the context China and highlights the heterogeneity within ethnic minority groups.