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Human Capital, Economic Development and Social Challenges in China

Paper Session

Sunday, Jan. 7, 2024 1:00 PM - 3:00 PM (CST)

Marriott Rivercenter, Conference Room 7
Hosted By: Association for Comparative Economic Studies
  • Chair: Scott Rozelle, Stanford University

The Burden of Education Costs in China: A Struggle for All, but Heavier for Lower-Income Families

Hongbin Li
,
Stanford University

Abstract

This study examines the level and equity of household education spending in China using representative microdata. We find that education expenditure constitutes a substantial portion of household income, averaging around 17.1%, and in-school expenses constitute the majority of education costs (73%), contrary to the focus on tutoring in media and policy discussions. Moreover, there is an inverse relationship between household income and the fraction of income spent on education, with the top quartile spending 10.6% of their income on education, while the bottom quartile spends a staggering 56.8%. Regression analysis indicates an income elasticity of 0.306, implying that education is a necessity good in China. These results underscore the excessive financial burden imposed by education expenditure, particularly on families in the lower income bracket. It is imperative to implement effective public policies in China that improve the affordability of education for a broader segment of the population.

Impact of Integrating Social-Emotional Learning Curricula on Human Capital: Evidence from a Randomized Controlled Trial in China

Huan Wang
,
Stanford University

Abstract

This paper aims to shed light on the potential impact of a social-emotional learning (SEL) curriculum on the human capital development of rural Chinese students. The paper reports findings from a Randomized Controlled Trial (RCT) conducted in rural regions of China, investigating the effectiveness of a government-supported SEL intervention in improving the educational outcomes and socio-emotional well-being of students. The study design encompasses 2100 students from 50 rural schools and randomly assigned to treatment and control groups. During one school year of trial, the treatment group received a weekly SEL curriculum that targeted the development of key socio-emotional skills, such as self-awareness, self-management, social awareness, and relationship skills. The control group, on the other hand, continued with the regular educational curriculum. Data was collected through a combination of surveys, academic assessments, and interviews, capturing both qualitative and quantitative measures. The study assessed various outcomes, including academic performance, resilience, emotional regulation, self-esteem, and overall well-being. Preliminary findings based on qualitative interviews with students and teachers suggest that the SEL intervention positively influenced emotional wellbeing of rural Chinese students. Findings from this study may hold implications for educational policymakers, school administrators, and practitioners seeking effective strategies to improve human capital outcomes for rural students.

Common Prosperity for Rural China Begins at 0 to 3 Years Old

Scott Rozelle
,
Stanford University

Abstract

Despite rapid economic growth in China since 1978, rural-urban inequality has widened. High levels of socioeconomic inequality can have profound implications for child development and lifelong educational equity. Using a dataset containing early childhood development (ECD) outcomes of 0- to 3-year-olds (N = 9,053) from study sites in Eastern, Central, and Western China, the study finds that the risks of cognitive, language, and motor delay are, respectively, 43.2, 18.3, and 20.7 percentage points higher in rural study sites than in urban Shanghai (ps < .01). Impact evaluation of cluster-randomized experiments shows that parental training (focusing on child psychosocial stimulation and caregiver-child interaction) can improve parenting beliefs and practices (or investments) and ECD outcomes of disadvantaged rural children (p < .01). Such programs can play an important role in advancing progress toward more social equality and economic equity, the stated goals of China’s “Common Prosperity” policy.

A Grand Gender Convergence or Divergence? Evidence of Skill Development, Education, and Employment Gaps in Rural China

Dorien Emmers
,
KU Leuven

Abstract

Gender gaps in skill development, education, and labor market outcomes exist around the world, but differ remarkable among regions. Using unique large-scale field data from rural China, this study tracks gender gaps in skill development and education from birth to young adulthood, and examines gender employment and pay gap among young adults. The results reveal that son preferences no longer define developmental and educational opportunities of children in rural China, because girls, on average, outperform boys from birth to young adulthood in terms of cognitive skill development and academic test scores. Pro-female skill and education gaps are found to be larger in households with higher socioeconomic status, where gendered patterns of parental investment can be more readily expressed (e.g., caregivers engage girls more often in interactive speech than boys). More affluent households face less stringent resource constraints, which otherwise could suppress parental investments regardless of gender. However, girls start lagging behind in their noncognitive skill development during adolescence. Despite higher educational attainment, upon graduation women do not outperform men on the job market. In fact, women obtain lower-paying and lower-status jobs than men and their career progression is slower, resulting in a further divergence of the wage gap over age. Policies raising awareness of gender gaps in skill development, education, and employment are needed to provide more equal opportunities, pay, and status to all.
JEL Classifications
  • I2 - Education and Research Institutions
  • I2 - Education and Research Institutions