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Demand for education in China

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  • Gregory Chow
  • Yan Shen

Abstract

This paper offers an explanation of the quantitative changes in education spending by the framework of demand analysis, including the changes in the ratio of educational funding to GDP in the period 1991-2002. The income effect is estimated mainly by using cross-provincial data, while time series data are used to estimate the price effect. Changes in government and non-government spending through time can be satisfactorily explained by the income and price effects. Demand for education services in the three levels of primary school, secondary school and higher education, and aggregate demand for all education services are investigated. The relation between income inequality and inequality in education opportunities is briefly discussed. Ten important findings are stated.

Suggested Citation

  • Gregory Chow & Yan Shen, 2006. "Demand for education in China," International Economic Journal, Taylor & Francis Journals, vol. 20(2), pages 129-147.
    • Handle: RePEc:taf:intecj:v:20:y:2006:i:2:p:129-147
    DOI: 10.1080/02664760600699468
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    References listed on IDEAS

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    1. Heckman, James J., 2005. "China's human capital investment," China Economic Review, Elsevier, vol. 16(1), pages 50-70.
    2. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    3. Fleisher, Belton M. & Wang, Xiaojun, 2004. "Skill differentials, return to schooling, and market segmentation in a transition economy: the case of Mainland China," Journal of Development Economics, Elsevier, vol. 73(1), pages 315-328, February.
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    Cited by:

    1. Gregory C. Chow, 2006. "An Economic Analysis of Health Care in China," Working Papers 70, Princeton University, Department of Economics, Center for Economic Policy Studies..
    2. repec:pri:cepsud:132chow is not listed on IDEAS
    3. Huang, Wei & Li, Fan & Liao, Xiaowei & Hu, Pingping, 2018. "More money, better performance? The effects of student loans and need-based grants in China's higher education," China Economic Review, Elsevier, vol. 51(C), pages 208-227.
    4. Yi Fan & Junjian Yi & Junsen Zhang, 2021. "Rising Intergenerational Income Persistence in China," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 202-230, February.
    5. Gregory C. Chow, 2006. "An Economic Analysis of Health Care in China," Working Papers 70, Princeton University, Department of Economics, Center for Economic Policy Studies..
    6. Jian Li & Eryong Xue, 2022. "Unpacking the Policies, Historical Stages, and Themes of the Education Equality for Educational Sustainable Development: Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-15, August.

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