Comparing Economic Realities: Chinese Graduate Students Weigh in on U.S. vs. China

Multicultural Insights is gearing up to present the results of its study of academic mobility among Chinese graduate students during the 10th China and Globalization Forum, Global Talent Mobility and Governance Session in Beijing, China, on May 25, 2024. 

The qualitative component of this ambitious study included a series of focus groups aimed at clarifying the various aspects of students’ decision-making regarding migration. 

One pivotal topic discussed during focus groups was the role of salary and benefits in the U.S. versus China. The insights offered by these students paint a nuanced picture of the economic trade-offs between the two countries. 

Salary and Purchasing Power 

One of the expected observations was Chinese graduate students’ understanding of the difference in potential earnings between the U.S. and China. As one of the participants summarized, “If you convert the U.S. dollar to Chinese yuan [when comparing salary in the U.S. and China], I think [in China] it is at least 70% less. But if you count the living expenses, then it might be 50% less.”

However, each country’s cost of living and purchasing power moderate this earning gap. To reflect this fact, the participants preferred to consider not just raw salary figures but the standard of living those salaries enable. One student in computer science estimated that “70-80% of the quality of life [can be achieved] with 50-60% of the salary in the industry. In the academic sphere, 20-30% of salary, but quality of life can be comparable.”

Further, regarding academic careers in China, participants highlighted perks such as free education for children and housing provided by Chinese universities, which are not typically offered in the U.S. 

Regional Variations within the U.S. 

The discussion also highlighted internal economic disparities within the U.S. itself. A participant shared an anecdote: “I have a lot of friends that are currently Ph.Ds. One in Texas, one in NYC. The one in NYC has a much higher stipend and earning in general, but he says he is living much worse than the one in Texas.”  

Lifestyle and Convenience Factors 

Beyond financial aspects, participants touched upon lifestyle and convenience as part of the standard of living. One participant pointed out, “In a big Chinese city, you will find that ordering delivery, ordering packages, and if you don’t like it – getting returns is easier than in the U.S.”  

On the other hand, another participant noted that “just because of the U.S. dollar purchasing power, traveling abroad may be easier if you are from the States, especially to Europe.”  

A significant difference noted was in the realm of paid time off. One student observed, “When I worked in China, they say that they only have ten days paid time off, and in the U.S., it’s 20 days.” This difference in work-life balance was especially crucial for participants interested in industry jobs.  

The insights from these graduate students offer a glimpse into the decision-making process of graduate students. It is clear that while salary is a significant factor, the combination of benefits, standard of living, regional costs, lifestyle conveniences, and work-life balance collectively shape their career choices and location preferences.  

Multicultural Insights will continue publishing insights from the focus group and other updates regarding the study’s course in preparation for the presentation of study results on May 25, 2024, in Beijing.  

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