Jann comments on Xiaogang Wu and Yu Xie's findings that earning returns to education are higher in the market sector than in the state sector of China's transition economy is commonly attributed to the more efficiently operating market mechanisms with respect to the valuation of human capital. However, both challenge the prevailing wisdom that education is necessarily more highly rewarded in the market sector. Basing their conclusion on an empirical analysis of the issue, they instead state that the market does not reward educational investment differentially.