Economic Outcome of Online Learning and Face-to-Face Education in China

Literature Review
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Literature Review
Distance learning, also known as online learning or e-learning, refers to a mode of education in which students can learn remotely from their homes or other locations using electronic communication tools such as the internet, video conferencing, and email (Ding, 2001). Distance education has become a popular form of learning in Mainland China due to its flexibility, accessibility, and affordability. With advancements in technology, distance education has evolved and expanded in China, providing learners with an opportunity to access education from anywhere, at any time. The expansion of distance education has led to a debate about the economic value of distance learning in comparison to face-to-face education. This literature review aims to examine the economic outcome of distance education in Mainland China and compare it to that of face-to-face education. Despite the popularity of distance learning in China, there is minimal research on the economic benefits of distance learning and how it compares to face-to face learning. Owing to the popularity of distance learning, there is a need to provide evidence on its economic benefits that can be used by students when making decisions on the investments in distance learning.
Notably, several empirical studies have been carried out to explore the economics benefits of online educations with varied scopes. Numerous studies have examined the influence of distance learning on enhancing the earning potential of the learner (Carnoy et al., 2012; Li, 2018; Li, Xia, Zhao, & Zhang, 2009; Ni, Xu, Liang, & Zhu, 2011; Zheng, Chen, and Zhang, 2009), some focused on examining the influence of distance learning on employment opportunities (Linardopoulous, 2012; Fogle & Elliot, 2013), and others examined the relationship between distance learning and career advancement (Castano-Munoz et al., 2016; Kibelloh & Bao, 2014). Some studies have also explored the likelihood that the economic values of a given distance learning program could be associated with the discipline (Li & Wang, 2021; Dominguez & Ridley, 2001). Since the focus of the current study is to provide information on the return on investment of distance education to students, I exclude studies that discuss the economic benefits of distance learning to the economy and other stakeholders. Notably, the current study hopes to provide more information that can be reliably used to analyze the potential return of investment of distance learning.
The review will focus on three key areas: the expansion of distance education in China, the economic value of distance learning, and the disciplinary differences in the economic outcomes of distance education. By exploring these areas, this review will provide insights into the potential economic benefits of distance education in China and the areas that need further attention and improvement.
Expansion of Distance Education in China
China has experienced significant expansion in higher education, including the growth of distance higher education. In the beginning, there was a shift from correspondence education to distance learning in the 1950s in mainland China. This was due to the demand for skilled and high-quality human resources to support the country's economic development. In the 1970s, Deng Xiaoping introduced reforms that focused on improving the quality of education and developing more skilled human resources (Ding, 2001). As part of these efforts, the government began to invest heavily in higher education, including distance higher education.
Radio and Television Universities (RTVs) emerged in 1983 and played a significant role in the expansion of distance higher education (Ding, 2001). The RTVs offered flexible learning opportunities for people who could not attend traditional universities due to various reasons, such as geographical barriers or work commitments. By 1985, RTVs enrolled around 40 percent of all students enrolled in higher education (Cukier, 1997). In 1998, traditional universities in China began to offer distance higher education programs, which led to the further expansion of distance higher education in the country (Ding, 2001). These programs allowed learners to access high-quality education from anywhere in the country. In 2011, the Open University of China (OUC) was established as a replacement for RTVs. The OUC is a comprehensive open university that provides distance higher education to learners throughout China. It offers a wide range of courses and degree programs that cater to the diverse needs and interests of learners.
Overall, the expansion of higher education and distance higher education in China has been driven by the government's commitment to developing a skilled workforce to support economic growth. The shift from correspondence education to distance learning, the establishment of RTVs, the introduction of distance higher education programs at traditional universities, and the establishment of the OUC are all evidence of China's commitment to providing access to high-quality education to a larger number of learners.
Online Education and EarningsEconomic Value of Online Education
Several studies have focused on various economic benefits of distance education, in terms of enhancing the learner’s including its impact on employment, earnings, and career advancement. Carnoy et al. (2012) conducted a survey study examining the earning gains reported by adult learners who enrolled in a two-year course offered by a university in Spain over six years. Compared to full-time workers, the researchers found that enrolling in a 2-year online education course resulted in positive economic benefits for the learners but the results were not translated to learners in a 3-year course. The positive earnings gains for those who completed the two-year second-cycle degree programs suggest that these programs are effective in equipping individuals with the necessary skills and knowledge to improve their employment prospects and increase their earning potential. This is an encouraging finding as it demonstrates that online distance education can provide meaningful benefits for adult learners, particularly those seeking to enhance their career opportunities. However, the lack of positive earnings gains for those who completed the three-year first-cycle degree programs raises important questions about the quality and relevance of these programs. It is possible that the longer duration of these programs, combined with the rapidly changing nature of the job market, may result in graduates having outdated or insufficient skills that are not in demand by employers. This may limit their ability to secure higher-paying jobs and experience the benefits of their education. Thus, online distance universities need to constantly evaluate and improve their programs to ensure that they are equipping learners with the skills and knowledge needed to succeed in the workforce.
Similarly, The study conducted by Castano-Munoz et al. (2016) provides further evidence that online distance learning can have a positive impact on the earning potential of learners. The finding that those who completed the online course at the open university reported marginal percentage gains in earnings compared to their peers who remained at the initial education level highlights the potential benefits of online distance education in improving career prospects and increasing income. The relevance of distance education to earnings was more definite when the researchers minimized the likelihood that the increased earning could be due to high earners being the more likely respondents to enroll in distance education. The separation of higher earners from young and more typical distance education learners reported larger earnings gains than the comparison group in the Spanish labor market (Castano-Munoz et al., 2016). This suggests that online distance education can be particularly beneficial for individuals who are seeking to improve their career prospects and increase their earning potential, especially those who may not have had access to traditional higher education opportunities.
Li (2018) conducted a study to examine the relationship between online learning and income. The researcher analyzed data from 2003 to 2006 to investigate the impact of distance learning on the earnings of junior college and distance undergraduate learners. The studyfindings indicate that online learning can have a positive effect on the income of learners, with distance learning increasing returns by 30-40% for junior college learners and by 50-60% for distance undergraduate learners (Li, 2018). This suggests that online education can be a viable option for learners seeking to improve their financial prospects. However, the study also found that the returns from online learning were lower compared to those of face-to-face education, particularly at the undergraduate level. This suggests that while online learning can offer financial benefits to learners, it may not be as effective as traditional classroom-based education in terms of income potential. Li (2018) highlights the potential benefits of online learning for learners seeking to improve their income but also underscores the need for further research to better understand the relationship between online education and financial outcomes.
Further, Li, Xia, Zhao, and Zhang (2009), Ni, Xu, Liang, and Zhu (2011) ), and Zheng, Chen, and Zhang (2009) conducted a cost-benefit analysis to investigate the economic benefits of distance education. The researchers used the Mincerian income equation, a commonly used economic model, to estimate the returns of distance education based on factors such as income, background, and work experience. The studies found that distance education can bring positive economic benefits, indicating that learners who pursued distance education could expect to see a return on their investment in terms of higher earnings (Li, Xia, Zhao, & Zhang, 2009(; Ni, Xu, Liang, & Zhu, 2011; Zheng, Chen, and Zhang, 2009). However, the study had some limitations that may limit the applicability of the findings. Notably, the sample data used in the study was not cross-sectional, which means that it was taken from a specific period and may not be representative of current trends. Additionally, the sample data failed to meet the assumptions of the Mincerian income equation, which could affect the accuracy of the findings. Furthermore, the study had problems with generalizability, which means that the findings may not apply to other populations or contexts beyond the specific sample used in the study.Nonetheless, the findings from the study were in line with similar studies conducted by Li et al. (2009) and Zhang, Chan and Zhang (2009).
Overall, there is empirical evidence that distance learning has a positive influence on the earning potential of a learner. Despite a number of limitations, all the reviewed studies showed that distance learning increases the learning potential of a student (learner (Carnoy et al., 2012; Li, 2018; Li, Xia, Zhao, & Zhang, 2009; Ni, Xu, Liang, & Zhu, 2011; Zheng, Chen, and Zhang, 2009). Despite these limitations, the studies provide some evidence for the positive economic benefits of distance education.
Online Learning and Employment Opportunities
Notably, the influence of online education on employment opportunities is another area of interest when examining the return of investment of distance learning. Several studies have examined the extent to which distance learning enhances employment opportunities, with most of the studies reporting negative perception of online degrees. Linardopoulos (2012) conducted a systematic review to explore how employers perceived degree obtained through distance learning. The researcher retrieved data from seven representative studies and found that a student who acquire their degree through distance learning may be less preferred to a peer with a traditional degree. The findings suggest that job applicants with online degrees may be at a disadvantage in terms of access to employment opportunities.
Equally, Fogle and Elliott (2013) conducted an exploratory research study to investigate the employment opport...