A Study On Schooling Cost, Return And Household Decision In Western Rural China

Rural residents in China has experienced continuous increase in income since reform and opening. West rural area, as a depressed area, develops slowly compared with other rural area in China. But household income per capita also increased continuously during the same period. Education has played an important role in increasing the income level of rural residents and changing the pattern of income distribution. And education has been as a fundamental and long-term measure to reduce poverty and develop economy of the west. Because of dropping behind, the west education development relies on not only lot of central investment, but also determination of education of rural households. Thus, the rational policy drawing from analysis of rural family education determination is a vital to break low income-low education level equilibrium.Utilizing the 2000, 2004, 2008 rural household survey data conducted by Gansu basal education project study group, this thesis aims to analyze the educational costs which rural households born, contribution rate of education among rural incomes and main factors which affected the educational determination of rural households.Our analysis suggests that the rural families, especially poor one, have an advantage from the policy of'free tuition, free book and reduced board'. All of their children can receive compulsory education, but other free, such as traffic-fee, food-fee and room-rent, have gradually been a burden for the poor residents who generally live in the remote hamlet. Compared with compulsory education cost, senior high school fee increased very rapidly and poor children frequently have no chance to continue study in the senior high school. At the same time, our studies show that going to high school is more important for rural residents to look for job and earn more money. So, whether or not going to senior high school will be main problem for rural households to decide.Estimated results show that household income per capita more affect on the enrollment rate of 16-18 years old than those of aged 7-15. Especially in high school, household income per capita has a larger impact on the enrollment rate of girls than of boys. The fact that quality-effect is larger than price-effect shows that education quality of primary and junior high school is playing a vital role in the educational requirements of west rural residents. More fiscal expenditures are necessary to west rural education, but it does not bring into play in a short time and needs accumulated process. Education degree of parents has a positive effect on enrollment probability of their children.This thesis suggests that a subsidy should mostly come from center government in order to be obtained enough by all poor boarders. Public education fund should be increased to promote educational quality of west rural school. Rural residents should have living subsidy to encourage them to receive education in senior school. Government should encourage and attract rural residents to choose and receive vocational education by reducing school fee and investing more money in the professional training school.