Who is more popular in the faculty recruitment of Chinese elite universities: overseas returnees or domestic graduates?

China's higher education has significantly progressed since its Reform and Opening-up Policy, with overseas returnees playing a crucial role. The increasing number of Chinese students studying abroad and the subsequent rise in early-career returnees returning for employment are noteworthy trends. Chinese universities, particularly elite ones, often show a preference for candidates with overseas educational experience, leading to distinct criteria for returnees and domestic graduates in recruitment, salary, and research support. However, this preference has faced criticism, questioning whether returnees' quality surpasses that of domestic graduates from top universities and whether their research output meets expectations. While studies examine the economic return of overseas education, research examining the educational return within the context of university faculty employment remains limited. This study aims to empirically investigate the impact of overseas education on early-career returnees' probability of securing employment in higher-ranking Chinese universities compared to their domestic counterparts using a large-scale resume analysis and propensity score matching (PSM). The study's contributions include establishing a comprehensive database of academic faculty resumes from elite Chinese universities and addressing the gap in literature regarding the educational advantages of overseas education for university faculty employment, analyzing evolving trends using cross-sectional data.

The human capital theory suggests that studying abroad enhances skills and competitiveness. International mobility is linked to improved language proficiency, interpersonal skills, and cross-cultural communication—valuable assets in the globalized job market. However, studies also highlight the role of social networks and potential difficulties in cultural adaptation upon return. Most research emphasizes the positive effects of overseas education on job prospects and career advancement, showing higher salaries, faster wage growth, and higher social status for returnees. However, the impact varies among groups, and studies suggest that the positive effects might diminish over time due to 'educational inflation' and an increasing number of individuals with similar qualifications. In the Chinese context, overseas qualifications are highly valued, with government and local policies incentivizing the return of skilled individuals. Foreign degrees are often considered more valuable than domestic ones, influencing university recruitment practices. However, the increasing number of returnees and the rising quality of domestic higher education raise questions about the ongoing advantage of overseas education.

This study used an extensive data collection method, mining resume information from the official websites of Chinese "Project 985" and "Project 211" universities. Data collection spanned several years, resulting in a database of approximately 89,299 resumes after excluding those with incomplete information. The study focused on academic and research-oriented faculty. Overseas education was defined as obtaining a degree from a foreign university. The study primarily focused on individuals who completed their undergraduate studies domestically and pursued graduate studies abroad. Propensity score matching (PSM) was employed to compare the employment outcomes of overseas returnees and domestic graduates, controlling for various factors like gender, undergraduate university level and location, master's level and location, publications, subject, and year of employment. The outcome variables included the ranking of the employed university (using ARWU ranking) and the discipline ranking of the university (using WuShulian's University Rankings). The study used several matching methods to ensure robustness. The data was further analyzed based on undergraduate university level (985, 211, ordinary) and time periods (before 2000, 2000-2009, 2010-2014, 2015-2022).

Descriptive results showed that overseas returnees were more likely to be employed by 985 universities than their domestic counterparts, with this advantage being more pronounced for those with undergraduate degrees from 211 and ordinary universities. PSM analysis confirmed this advantage, showing that studying abroad for a doctoral degree significantly improved the ranking of the employed university. The impact of studying abroad was more significant for those with undergraduate degrees from 211 universities than those from 985 or ordinary universities. The advantage of studying abroad increased over time. The analysis across different time periods showed that the positive effect of studying abroad was not significant in the earlier periods but became increasingly significant in later periods, with the impact of studying abroad being most significant in the most recent period (2015-2022). The effect varied across different undergraduate university levels, with the latest trend indicating that those who attended Project 985 universities during their undergraduate stage derived the most significant advantages from studying abroad during their doctoral phase. In summary, the study strongly supports that overseas experience improves employment outcomes.

The findings confirm the strong preference of Chinese universities for overseas returnees in faculty recruitment. This preference is likely rooted in the historical context where China's higher education system was less developed and Western educational credentials held greater prestige. The study shows that even with the continuous growth in the number of returnees and improvements in the quality of domestic higher education, the advantage of overseas education persists. The increasing advantage for those with 985 undergraduate backgrounds in recent years reflects the intensifying competition and higher standards in Chinese higher education. The study suggests that countries with less-developed higher education systems may continue to highly value returnees, reflecting a global hierarchy of labor market competitiveness. However, the ongoing efforts to enhance the quality of domestic higher education and the development of an independent knowledge system with Chinese characteristics may potentially alter the long-term value placed on overseas education.

This study provides strong empirical evidence supporting the advantage of overseas education for early-career returnees seeking faculty positions in elite Chinese universities. This advantage persists and strengthens over time, particularly for those with 985 undergraduate degrees. Future research could incorporate socio-economic background data, analyze post-COVID-19 trends, and utilize more dynamic measures of university rankings.

The study acknowledges limitations such as the absence of socio-economic background data, which might affect the results. The impact of the COVID-19 pandemic on employment trends requires further investigation. The use of fixed university rankings may also introduce some error. Future studies should address these issues.