Accumulating human capital while increasing educational inequality: a study on higher education policy in China

Since 1999, the expansion of higher education has been viewed as an important step in accumulating human capital for China that was to gradually open its domestic sectors to the global market at a turbulent time at the turn of the century. Recent studies suggest that the improvement of human capital has succeeded in preparing China with a solid platform to weather the economic crisis in recent years. However, these changes have not necessarily favoured the disadvantaged groups or promoted social mobility. This article demonstrates that access to elite universities of prestigious status is not equal for students from different socio-economic backgrounds. An analysis of graduates' starting salaries shows that educational inequality has contributed to income inequality, which is one of the key obstacles to building a harmonious society. Inequality of opportunity in higher education occurred in the context of marketization and localization of higher education, which have been worsening the regional disparity of human capital investment. This article examines the pros and cons of the policy changes, and attempts to draw lessons from the structural problems lingered from the past policies which China has to address in the aftermath of the current economic crisis.