Expanding the Middle-Income Group Through Education: Preliminary Evidence From China

Abstract

Purpose This study explores the role of education in fostering middle-income earners in China, elucidating the development and current status of the capabilities of education in this regard. This study uses the historical changes in this demographic in the United States as a frame of reference to explore future goal-setting and implementation pathways for expanding the middle-income group through education in China. Design/Approach/Methods This study uses data on variables such as income, educational attainment, and years since graduation from the China Family Panel Studies database to analyze the changing patterns in China's middle-income group regarding educational attainment. This study also uses data from the Panel Study of Income Dynamics to examine the historical changes in the middle-income group in the United States and compares the findings to those in China. Findings Results reveal the following: the changing patterns in the share of the middle-income group relative to educational attainment; the distribution of the low-, middle-, and high-income groups by educational attainment; the changing trends in the share of middle-income group by educational attainment between 2012 and 2018; and the changing trends in the share of middle- and high-income groups by educational attainment regarding the number of years since graduation. Originality/Value Rooted in and driven by current issues facing China, this study compares education in China and the United States and offers preliminary evidence of the role of education in expanding the middle-income group.