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Has the compulsory school merger program reduced the welfare of rural residents in China?

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Listed:
  • Cai, Weixian
  • Chen, Gong
  • Zhu, Feng

Abstract

The compulsory school merger program in rural regions of China imposed higher education costs on rural residents, decreased their consumption and reduced their welfare. In this study, we employ household-level data and the difference-in-differences method to analyze the policy effect on residents' consumption and education costs. Our results show that the compulsory school merger program had a negative effect on the consumption of rural residents and inflicted multiple education costs on them. We also find that the increase in the distance between school and home is an important explanation for the effect of this policy on rural residents' education costs.

Suggested Citation

  • Cai, Weixian & Chen, Gong & Zhu, Feng, 2017. "Has the compulsory school merger program reduced the welfare of rural residents in China?," China Economic Review, Elsevier, vol. 46(C), pages 123-141.
    • Handle: RePEc:eee:chieco:v:46:y:2017:i:c:p:123-141
    DOI: 10.1016/j.chieco.2017.07.010
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    References listed on IDEAS

    as
    1. Liu, Jing & Xing, Chunbing, 2016. "Migrate for education: An unintended effect of school district combination in rural China," China Economic Review, Elsevier, vol. 40(C), pages 192-206.
    2. Jones-Smith, Jessica C. & Popkin, Barry M., 2010. "Understanding community context and adult health changes in China: Development of an urbanicity scale," Social Science & Medicine, Elsevier, vol. 71(8), pages 1436-1446, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hannum, Emily & Wang, Fan, 2022. "Fewer, better pathways for all? Intersectional impacts of rural school consolidation in China’s minority regions," World Development, Elsevier, vol. 151(C).
    2. Xie, Gang & Zhang, Lei, 2022. "Effects of school closure on household labor supply: Evidence from rural China," China Economic Review, Elsevier, vol. 71(C).
    3. Xi Zhang & Scott Rozelle, 2022. "Education Universalization, Rural School Participation, and Population Density," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 4-30, July.
    4. Emily Hannum & Xiaoying Liu & Fan Wang, 2021. "Estimating the Effects of Educational System Consolidation: The Case of China’s Rural School Closure Initiative," Economic Development and Cultural Change, University of Chicago Press, vol. 70(1), pages 485-528.
    5. Muzhe Pan & Yaofu Huang & Yawen Qin & Xun Li & Wei Lang, 2022. "Problems and Strategies of Allocating Public Service Resources in Rural Areas in the Context of County Urbanization," IJERPH, MDPI, vol. 19(21), pages 1-20, November.
    6. Zhao, Yu & Du, Hui & Li, Rui & Zhou, Guangsu, 2024. "The long-term influence of education resources allocation on the migration: Evidence from the China’s rural school consolidation policy," Journal of Asian Economics, Elsevier, vol. 91(C).

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    More about this item

    Keywords

    Compulsory school merger program; Rural residents' consumption; Precautionary saving;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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