We use three waves of urban household survey from 1995 to 2007 to investigate the trends of residual inequality and its determinants. First, we find that the enlargement in both the overall and residual inequality was larger at the upper half of the wage distributions between 2002 and 2007....

We document the sharp expansion of higher education in China beginning in 1999 and analyze its impacts on the unemployment of college graduates, using nationally representative population surveys from 2000 and 2005. We show that the expansion policy has increased the probability of college...