IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v79y2025ics154461232500501x.html
   My bibliography  Save this article

Local government debt and household human capital investment

Author

Listed:
  • Wang, Chao
  • Geng, Wei

Abstract

Leveraging large-scale household survey data from China spanning 2011 to 2019, this study examines the influence of municipal debt on household human capital investment. We present strong evidence demonstrating a negative correlation between municipal indebtedness and household education expenditures. This effect is more pronounced among families with lower parental education levels, those with daughters, and those residing in rural areas. Additionally, we find that household real estate purchases and savings are likely mechanisms that explain this relationship. Our key findings remain robust across alternative identification strategies, including instrumental variable and difference-in-differences approaches.

Suggested Citation

  • Wang, Chao & Geng, Wei, 2025. "Local government debt and household human capital investment," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s154461232500501x
    DOI: 10.1016/j.frl.2025.107238
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232500501X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:79:y:2025:i:c:s154461232500501x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.