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As the number of graduates from institutions of higher education has soared year after year, alongside growth in the demand for high-end talent posed by economic development, a growing number of graduates from undergraduate programs are choosing to continue on to receive graduate education, so as to improve their competitive advantage in the labor market. This paper conducted empirical analysis on data from the Beijing College Students Panel Survey. Studies have found that, among undergraduate students who graduated from institutions of higher education in Beijing in 2010 and 2012, approximately one third chose to continue on to receive graduate education, and both the family background and academic performance of those students who pursued graduate education were significantly better than the students who sought employment directly after graduation. Further analysis indicated that, with respect to access to domestic opportunities for graduate education, the variable of family background essentially exercises an effect by influencing the type of institution at which students pursued undergraduate education, as well as their academic performance. In comparing the two options of studying abroad and pursuing in-country graduate education, the type of institution at which students pursued undergraduate education and their academic performance had no significant impact in this respect, and it was chiefly the family's socioeconomic status that had an effect. The findings in this study have important policy implications for graduate student admissions and training in China at present. [ABSTRACT FROM AUTHOR]