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Does the ‘Double Reduction’ Policy Reduce ‘Rat Race’? A Natural Experimental Study in China

Author

Listed:
  • Philip Arestis

    (Department of Land Economy, University of Cambridge, Cambridge, UK)

  • Mianshan Lai

    (China Center for Special Economic Zone Research, Shenzhen University, Shenzhen, China)

  • Jiale Yang

    (College of Economics, Shenzhen University, Shenzhen, China)

  • Yuexun Zhong

    (College of Economics, Shenzhen University, Shenzhen, China)

Abstract

This paper investigates the effects of an unprecedented education policy called ‘double reduction’ (DR) on students’ performance, with evidence from China. One of the significant changes brought about by this policy is the transition of examination scores from a numerical system to a grading system. We found a junior middle school in a small town in Guangzhou that met the requirements for a natural experiment, and we used such unique data to examine three hypotheses. After the implementation of DR, the ‘rat race’ reflected on the students’ grade is reduced. To examine heterogeneity, we apply quantile regression showing that the high-ability students exert less efforts on the ‘rat race’ than low-ability students. Meanwhile, we also provide possible explanations in terms of this phenomenon. Overall, this study not only does it assess the grading transformation that DR policy induced but also fills the gap in the field of DR from an economic perspective.

Suggested Citation

  • Philip Arestis & Mianshan Lai & Jiale Yang & Yuexun Zhong, 2025. "Does the ‘Double Reduction’ Policy Reduce ‘Rat Race’? A Natural Experimental Study in China," Journal of Economic Analysis, Anser Press, vol. 4(3), pages 44-64, September.
    • Handle: RePEc:bba:j00001:v:4:y:2025:i:3:p:44-64:d:430
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    References listed on IDEAS

    as
    1. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    2. Raphael Boleslavsky & Christopher Cotton, 2015. "Grading Standards and Education Quality," American Economic Journal: Microeconomics, American Economic Association, vol. 7(2), pages 248-279, May.
    3. Susan Athey & Guido W. Imbens, 2006. "Identification and Inference in Nonlinear Difference-in-Differences Models," Econometrica, Econometric Society, vol. 74(2), pages 431-497, March.
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