Human Resources in China: The Birth Quota, Returns to Schooling, and Migration

Rural elderly have 40% of the income of those in urban areas, spend a larger share of their income on food, are in worse health, work later into their lives, and depend more on their children, lacking pensions and public services. The birth quota since 1980 has particularly restricted the childbearing of rural less educated women, who now faceretirement with fewer children for support. Inequality in China is also be traced to increasing returns to schooling, especially beyond secondary school. Government restrictions on rural-urban migration reduces national efficiency, adds to the urban-rural wage gap, and increases inequality.