IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-18-00623.html
   My bibliography  Save this article

Education arms race, fertility rate and education inflation

Author

Listed:
  • Weiguang Liu

    (Nagoya University)

Abstract

There are many reasons behind the education inflation. I tried to explain it in two aspects. First, every individual family has an incentive to occupy a higher status in the education hierarchy for honor, which means there is a zero-sum education arms race game. Second, the low fertility rate intensifies the education arms race because it deprives parents of other options. The extreme case is China's one-child policy. I built a behavioral economic model based on Veblen's basic thoughts to explained how these two factors intertwine with each other and contribute to education inflation.

Suggested Citation

  • Weiguang Liu, 2019. "Education arms race, fertility rate and education inflation," Economics Bulletin, AccessEcon, vol. 39(2), pages 937-946.
    • Handle: RePEc:ebl:ecbull:eb-18-00623
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I2-P90.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    2. William A. Brock & Steven N. Durlauf, 2002. "A Multinomial-Choice Model of Neighborhood Effects," American Economic Review, American Economic Association, vol. 92(2), pages 298-303, May.
    3. Nancy Qian, 2009. "Quantity-Quality and the One Child Policy:The Only-Child Disadvantage in School Enrollment in Rural China," NBER Working Papers 14973, National Bureau of Economic Research, Inc.
    4. Patrizia Ordine & Giuseppe Rose, 2017. "Too Many Graduates? A Matching Theory of Educational Mismatch," Journal of Human Capital, University of Chicago Press, vol. 11(4), pages 423-446.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Yang & Michael Veall, 2020. "Living with the In-laws in China: Which Way is the Spousal Transfer?," Economics Bulletin, AccessEcon, vol. 40(4), pages 3147-3152.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hajer Habib, 2023. "Remittances and Labor Supply: Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1870-1899, June.
    2. Jialing (Catherine) Lin & Zhimin Zhou & Fucheng Zheng & Xinru Jiang & Ninh Nguyen, 2023. "How do hotel star ratings affect the relationship between environmental CSR and green word‐of‐mouth?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2651-2663, September.
    3. Ferdinand Thies & Sören Wallbach & Michael Wessel & Markus Besler & Alexander Benlian, 2022. "Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1691-1705, September.
    4. Rod Mccoll & Yann Truong & Antonella La Rocca, 2019. "Service guarantees as a base for positioning in B2B," Post-Print hal-02326105, HAL.
    5. Nakabayashi, Masaki, 2011. "Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s," MPRA Paper 30597, University Library of Munich, Germany.
    6. Keith Head & Thierry Mayer, 2008. "Detection Of Local Interactions From The Spatial Pattern Of Names In France," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 67-95, February.
    7. Shih‐Chu Chou & Zhe‐An Li & Tawei Wang & Ju‐Chun Yen, 2023. "How the quality of initial coin offering white papers influences fundraising: Using security token offerings white papers as a benchmark," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 3-18, January.
    8. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, September.
    9. Zhang, Hongjuan & Young, Michael N. & Tan, Justin & Sun, Weizheng, 2018. "How Chinese companies deal with a legitimacy imbalance when acquiring firms from developed economies," Journal of World Business, Elsevier, vol. 53(5), pages 752-767.
    10. Cristina Robledo-Ardila & Juan Pablo Román-Calderón, 2022. "Potential: in search for meaning, theory and avenues for future research a systematic review," Management Review Quarterly, Springer, vol. 72(1), pages 149-186, February.
    11. Ea Hoppe Blaabæk & Mads Meier Jæger & Joseph Molitoris, 2020. "Family Size and Educational Attainment: Cousins, Contexts, and Compensation," European Journal of Population, Springer;European Association for Population Studies, vol. 36(3), pages 575-600, July.
    12. Jascha-Alexander Koch & Michael Siering, 2019. "The recipe of successful crowdfunding campaigns," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 661-679, December.
    13. Liu, Ya-Fei & Li, Hui & Liang, Sai, 2022. "Any reputation is a good reputation: influence of investor-perceived reputation in restructuring on hospitality firm performance," Annals of Tourism Research, Elsevier, vol. 92(C).
    14. Sascha Becker & Francesco Cinnirella & Ludger Woessmann, 2010. "The trade-off between fertility and education: evidence from before the demographic transition," Journal of Economic Growth, Springer, vol. 15(3), pages 177-204, September.
    15. Fujii, Tomoki & Shonchoy, Abu S. & Xu, Sijia, 2018. "Impact of Electrification on Children’s Nutritional Status in Rural Bangladesh," World Development, Elsevier, vol. 102(C), pages 315-330.
    16. Gnekpe, Christian & Jimenez, Alfredo, 2023. "Smoke signal: When firms' patent strategy and local patent protection system affect equity stakes in cross-border acquisitions," Journal of International Management, Elsevier, vol. 29(6).
    17. Peng, Fei & Anwar, Sajid & Kang, Lili, 2022. "Number of siblings, access to treated water and returns to education in China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 526-538.
    18. Trevon D. Logan & Manisha Shah, 2013. "Face Value: Information and Signaling in an Illegal Market," Southern Economic Journal, John Wiley & Sons, vol. 79(3), pages 529-564, January.
    19. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics, revised Jan 2009.
    20. María Lourdes Arco-Castro & María Victoria Lopez-Pérez & Sara Rodriguez-Gomez & Raquel Garde-Sánchez, 2020. "Do Stakeholders Modulate Philanthropic Strategy? Corporate Philanthropy as Stakeholders’ Engagement," Sustainability, MDPI, vol. 12(18), pages 1-18, September.

    More about this item

    Keywords

    education arms race; fertility rate; education inflation;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • D1 - Microeconomics - - Household Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-18-00623. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.