Do pension subsidies reduce household education expenditure inequality? Evidence from China

Dong, Shizheng; Zhang, Zili; Han, Y. L.; Si, Yanwu

doi:10.1016/j.iref.2023.06.005

Cited by 3 publications

(2 citation statements)

References 42 publications

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“…From a micro-family perspective, parents, as the decision-makers in a typical family, can influence the amount and timing of their children’s education investments based on family wealth and their expectations [ 5 , 6 ]. Fiscal policies have significant influences on education investments by modulating household income levels [ 7 , 8 ]. They are the primary strategies adopted by governments to reduce educational inequality [ 9 ].…”

Section: Introductionmentioning

confidence: 99%

Household Decision-Making Choices: Investment in Children’s Education or Self-Consumption

Jiang,

Liu,

Zhang

2024

Behavioral Sciences

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Analyzing the sustainable decision-making mechanism between household consumption and education investment can theoretically develop education. This study uses the continuous-time utility model to demonstrate the independent characteristics of consumption and education investment, as well as the principle of decision incompatibility in the decision-making process of the utility maximization problem. Then, we establish a three-phase logarithmic utility model to obtain the intertemporal decision-making path of a family. The analysis shows that the investment allocation ratio between the two phases depends on the expected and discounted level of the offsprings’ abilities, while the total investment level is related to parental altruism. When parents, with foresight, factor in prospective transfer payments from progeny, the optimal decision is to maximize their children’s ultimate human capital within a given total investment. Education investment not only squeezes out consumption but also promotes consumption in various periods due to future transfer payments. The decision-making process of three typical growth stages indicates that as offspring mature and their human capital increases, parents’ willingness to invest in education decreases while self-consumption escalates. This study provides a new perspective and theoretical basis for studying household education expenditure, motivation, and related policy formulation.

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Section: Introductionmentioning

confidence: 99%

Household Decision-Making Choices: Investment in Children’s Education or Self-Consumption

Jiang,

Liu,

Zhang

2024

Behavioral Sciences

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“…Albertus et al [26] found that higher exposure to land reform across Peru in the 1970s negatively impacted household educational investment. Similarly, previous research in rural China has tended to focus on reforms such as the registered residence system [27], rural tax policies [28], and new rural insurance policies [29,30], examining their effects on family education investment. Most of these policies influence family education investment behavior by alleviating income risks and financial constraints faced by households, thereby encouraging increased investment in education [31].…”

Section: Introductionmentioning

confidence: 99%

The Impacts of the Poverty Alleviation Relocation Program (PARP) on Households’ Education Investment: Evidence from a Quasi-Experiment in Rural China

Wang,

Zheng

2024

Sustainability

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Families’ education investment in their children is crucial for fostering and accumulating human capital among rural children in China. This study examines the impact of the Poverty Alleviation Relocation Program (PARP) on household education investment using panel data from a large-scale survey conducted in 16 counties across 8 provinces over three waves. Employing a staggered difference-in-differences (DID) method, we find a significant increase in average education investment per student in households following the PARP’s implementation, supported by multiple robustness tests. Mechanism analysis reveals that the increase is primarily driven by a higher household income and lower medical expenses among relocated families. Heterogeneity analysis shows notable variations based on relocation attributes and household characteristics, with stronger effects particularly observed for dispersed relocation, scattered resettlement, and household heads with over 6 years of education or in good health. The impact is sustained and strengthens with longer durations of relocation. Our findings offer valuable insights for enhancing rural household education investment.

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Educational attainment and family health risk behaviors

Zhang,

Tian,

et al. 2024

International Review of Economics & Finance

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Do pension subsidies reduce household education expenditure inequality? Evidence from China

Cited by 3 publications

References 42 publications

Household Decision-Making Choices: Investment in Children’s Education or Self-Consumption

Household Decision-Making Choices: Investment in Children’s Education or Self-Consumption

The Impacts of the Poverty Alleviation Relocation Program (PARP) on Households’ Education Investment: Evidence from a Quasi-Experiment in Rural China

Educational attainment and family health risk behaviors

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