Research On Public Education Spending,Educational Human Capital And Poverty Reduction In China

Accurate Poverty Alleviation is one of the three major challenges in building a well-off society in an all-round way.The important role of educational human capital in poverty alleviation has gained global consensus and is also the key to China's Accurate Poverty Alleviation.Public education spending is an important source of educational human capital formation.So increasing public education spending to raise educational human capital of poor families is a fundamental solution to achieving precise poverty alleviation.When studying the role of public education in poverty alleviation,most of the existing literatures focus on the macroscopic level,which lacks the analysis of the intrinsic mechanism on the microscopic level.Accurate out of poverty,not only to pay attention to the overall effect of the macroscopic level,but also pay attention to the micro-level internal mechanism.Based on the mechanism of education to poverty alleviation,this paper combines macroscopical and microcosmic perspectives to provide better theoretical support and operational ideas for China's Accurate Poverty Alleviation through static and dynamic analysis.On the basis of combing the existing literature,we try to analyze the role of public education spending in poverty reduction education through human capital from the logic of "the measurement of poverty status-macro-tatic poverty reduction-micro-dynamic poverty reduction".First of all,this paper applies the equivalent scale to correct the per-capita income of households,estimating and describing the scale of poverty and household's vulnerability to poverty in China based on the data from China Family Panel Studies(CFPS).Secondly,based on the data from developing countries(including China),we empirically test the effect of public education spending and educational human capital on poverty reduction from the static analysis perspective.Finally,based on CFPS,we further reveal the internal mechanism of public education spending to poverty reduction from the perspective of dynamic analysis,which includes:one is exploring the function of public education spending on educational human capital investment,which is to analyze the role of public education spending in household's education spending;On this basis,we further analyze the direct effect,indirect effect and total effect of public education spending and educational human capital on household's vulnerability to poverty.The empirical results of this paper show:(1)The poverty problem in China is still serious,while the poverty rate is still high,the poverty gap is continuing widening.From the perspective of poverty rate,whether measured by China's official poverty standards or by the World Bank's poverty standards,the poverty rate in China was above 9%in 2014.If measured by relative poverty standards,the poverty rate is higher,reaching 37.93%.From the perspective of poverty gap,the poverty gap in China expanded from 43.52%,44.60%and 46.35%in 2010 to 49.47%,51.81%and 52.84%in 2014 respectively based on three kinds of poverty standards above.(2)The problem of household's vulnerability to poverty can not be ignored either.In 2014,up to 7%of families in China are likely to fall into poverty in the future measured by China's official poverty standards.On the World Bank's poverty standards,the ratio rises to 14.15%,while it is 48.78%on the relative poverty standards.(3)From the overall effect of poverty reduction point of view,public education spending is good for alleviating the breadth and depth of poverty,but the effect on the breadth of poverty is stronger.Empirical results show,per capita public spending on education increased by 1%,the poverty rate will decrease by 3.48 percentage points,while the poverty gap decreased only by 0.46 percentages.(4)From the internal mechanism of poverty reduction,public education spending affects the vulnerability of families through two paths.One is that public spending on education indirectly affects the vulnerability of poverty by influencing spending on family education.Empirical results show,per capita public spending on education increased by 1%,it will indirectly reduce household's vulnerability to poverty by 0.005 percentages.The other is that public spending on education directly affects the vulnerability to poverty.Per capita public spending on education increased by 1%,it will directly reduce household's vulnerability to poverty by 0.0469 percentages.In total,Per capita public spending on education increased by 1%,it will reduce household's vulnerability to poverty by 0.0474 percentages.(5)The indirectly effects is different among families who are in different quantiles of vulnerability to poverty and different education levels.First of all,the crowding-in effect of public education spending on family education expenditure is different between urban and rural areas and among diffenent income levels.Empirical results show,the crowding-in effect is stronger in rural families and the lower income families.Secondly,the effect of family education expenditure on the vulnerability to poverty is heterogeneous.This effect exists only in the families whose children study in compulsory and secondary school.(6)The directly effects is also heterogeneous among families who are in different quantiles of vulnerability to poverty and whose children study in different education levels.Empirical results show,with quantile of vulnerability to poverty or education level increased,the direct effect of public education spending on the vulnerability to poverty is rising.According to the above conclusions,this paper puts forward corresponding policy suggestions for improving the structure of public education expenditure,promoting accurate poverty alleviation work,and formulating a more effective policy portfolio for poverty alleviation.