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Inequality of opportunity and household education expenditures: Evidence from panel data in China

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  • Yang Song

    (Renmin University of China)

  • Guangsu Zhou

    (Nankai University, China)

Abstract

This paper This paper offers the first empirical evidence on the impact of inequality of opportunity on household education investment by using the by using the by using the by using the by using the by using the panel data from China Family Panel Studies (CFPS) in three in three in three in three waves (2010, 2012 and 2014). Our result suggests that inequality of opportunity has a negative effect on household education expenditures. This result is robust to robustness checks. Furthermore, the disadvantaged households (whose householders with less education, income, and rural hukou status) seem to be affected more by inequality of opportunity within the county they live in. Higher inequality of opportunity in the comparison group may reduce their incentives to investment more on education. Policy suggestions to reduce inequality of opportunity may include reducing labor market discrimination based on gender and hukou, balancing education resources to create more equal educational opportunities, and offering children education subsidies in low-income families.

Suggested Citation

  • Yang Song & Guangsu Zhou, 2017. "Inequality of opportunity and household education expenditures: Evidence from panel data in China," Working Papers 439, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2017-439
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2017-439.pdf
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    2. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2018. "Inequality of Opportunity in Developing countries: Does the income aggregate matter?," LIS Working papers 739, LIS Cross-National Data Center in Luxembourg.
    3. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2020. "Trends in Inequality of Opportunity for Developing Countries: Does the Economic Indicator Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 503-539, June.
    4. Wang, Haining & Cheng, Zhiming, 2021. "Mama loves you: The gender wage gap and expenditure on children's education in China," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1015-1034.
    5. Song, Yang & Wu, Weixing & Zhou, Guangsu, 2020. "Inequality of opportunity and household risky asset investment: Evidence from panel data in China," China Economic Review, Elsevier, vol. 63(C).
    6. Wang, Haining & Cheng, Zhiming, 2022. "Kids eat free: School feeding and family spending on education," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 196-212.
    7. Huang, Xiao & Huang, Shoujun & Shui, Ailun, 2021. "Government spending and intergenerational income mobility: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 387-414.
    8. Dai, Xinchen & Li, Jing, 2021. "Inequality of opportunity in China: Evidence from pseudo panel data," China Economic Review, Elsevier, vol. 68(C).
    9. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2019. "The distribution of wealth in the U.S. and Spain: the role of socio-economic factors," Working Papers 506, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    Keywords

    income inequality; inequality of opportunity; education expenditures; economic growth; China.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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