In China, it used to be the case that when one person becomes a graduate student, the whole family feels honored. By the end of the 80s, however, there appears in Chinese universities an unprecedented phenomenon: quite a few graduate students ask to withdraw. In 1988 alone, there are over 700 graduate students that voluntarily withdraw in the whole country. At that time, the main reasons for graduate students to drop out are two:

1. For the sake of going abroad. At that time the educational departments of the government stipulated that those who were working towards their master's degree can not apply to go abroad to study. Those graduate students that had graduated also had to work for two years, before they were eligible to study abroad on their own. To the graduate students that are anxious to go abroad to study, this no doubt is an obstacle.
2. For the sake of finding a good job. At that time, when a graduate student graduated, if he/she was assigned a job by the government, the salary would not be too high. But if he/she went to a large profit enterprise to work, especially a joint-venture profit enterprise, the salary would be two times or three times that of the average graduate student. Therefore, while attending school some graduate students withdrew to get employment as soon as they found an ideal job.

Ten years later, 1997, at the graduate school registration office at People's University, the number of people who came to register and paid fees on the first day were over 2000 people. In recent years, the graduate school craze at all the universities in Beijing became hotter by day. At a class for taking the graduate English test at the Beijing Business and Trade University, the big classroom that can seat 1000 was unexpectedly filled up. There were many people who came to audit the class bringing their own chairs.

Within a short ten years, how come there was so much change? One of the important reasons is the need for trained people in the society.

Ten years ago, after graduation graduate students were mainly assigned to work in scientific research institute and schools. The salary at these places is much lower than that in some big companies or enterprises. On the other hand, the needs of these big companies and enterprises for trained people were mainly college graduates. Therefore, many college students would no longer try for graduate school as soon as they found a job with a profit enterprise. Some even dropped out after they passed the test.

Ten years later, things have changed a lot. The need for people with college + education in the society increases year by year. According to the labor market of Beijing municipality, the need for people with college + education was 74% in 1995 and it went up to 80% in 1996. Some key universities, such as Beijing University, Qinghua University and so on, also have a new regulation, to the effect that new teachers have to have doctoral degrees. The demand in some big companies for the ratio of master degrees and Ph.D. holders to the total number of employees is also higher. Therefore, people who are already on the job and college graduates all hope to return to school to work towards a masters and doctoral degree, so that they can find better jobs later.