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Tourism growth, education decline: Evidence from China’s 5A attraction expansion

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  • He, Zeyi
  • Hu, Zhi-An
  • Huang, Wei
  • Kang, Yankun

Abstract

This paper examines how tourism expansion, driven by the establishment of China’s top-tier tourist attractions, affects human capital accumulation. We find that exposure to tourism growth before age 17 significantly reduces high school enrollment, particularly among disadvantaged individuals and in less-developed regions. Mechanism analysis indicates that individuals make schooling decisions by weighing the opportunity cost of continued education against its expected long-term returns. Moreover, following tourism expansion, we observe declines in parental educational expectations and investments, alongside poorer academic performance among children. These findings highlight the complex trade-offs between tourism-led economic growth and educational development.

Suggested Citation

  • He, Zeyi & Hu, Zhi-An & Huang, Wei & Kang, Yankun, 2025. "Tourism growth, education decline: Evidence from China’s 5A attraction expansion," Journal of Urban Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:juecon:v:150:y:2025:i:c:s0094119025000762
    DOI: 10.1016/j.jue.2025.103811
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    Keywords

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    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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