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Universal basic education and the vulnerability to poverty: evidence from compulsory education in rural China

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  • Yuping Yang
  • Xiaodong Guo

Abstract

This article studies the effects of universal basic education on the vulnerability to poverty in rural China while exploring this mechanism from a capability perspective. A regression-discontinuity design based on the implementation of compulsory education is used to identify the effects with household data. We find that compulsory education has significantly reduced the vulnerability to poverty by popularizing basic education in rural China. Regarding the mechanism itself, vulnerability to structural poverty is the primary source of vulnerability in rural China. Universal basic education’s effect on reducing vulnerability to structural poverty is larger than that on reducing vulnerability to transitory poverty. Further analysis reveals that compulsory education primarily enhances various capabilities to obtain permanent income—such as cognitive abilities, health and the engagement in non-agricultural jobs—which are important pathways to reducing vulnerability to structural poverty. Our findings suggest that universal basic education has a fundamental effect on reducing vulnerability.

Suggested Citation

  • Yuping Yang & Xiaodong Guo, 2020. "Universal basic education and the vulnerability to poverty: evidence from compulsory education in rural China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 25(4), pages 611-633, October.
    • Handle: RePEc:taf:rjapxx:v:25:y:2020:i:4:p:611-633
    DOI: 10.1080/13547860.2019.1699495
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    Cited by:

    1. Zhengjie Zhang & Jiahao Song & Caixia Yan & Dingde Xu & Wei Wang, 2022. "Rural Household Differentiation and Poverty Vulnerability: An Empirical Analysis Based on the Field Survey in Hubei, China," IJERPH, MDPI, vol. 19(8), pages 1-15, April.
    2. Nicholas Ngepah & Tsholofelo Makgalemele & Charles Shaaba Saba, 2023. "The relationship between education and vulnerability to poverty in South Africa," Economic Change and Restructuring, Springer, vol. 56(1), pages 633-656, February.
    3. Yao Zhang & Jianjun Huai, 2023. "A Case Study of Farmers’ Behavioral Motivation Mechanisms to Crack the Fractal Multidimensional Relative Poverty Trap in Shaanxi, China," Agriculture, MDPI, vol. 13(11), pages 1-22, October.
    4. Zheng Wang & Mingwei Yang & Zhiyong Zhang & Yingjuan Li & Chuanhao Wen, 2022. "The Impact of Land Transfer on Vulnerability as Expected Poverty in the Perspective of Farm Household Heterogeneity: An Empirical Study Based on 4608 Farm Households in China," Land, MDPI, vol. 11(11), pages 1-16, November.

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