"Quantity - Quality" Substitution Effect In Chinese Family Education Decision - Making

Along with our country gradually enters into an aging society, such as social pension, economic growth, demographic dividend and other issues become increasingly prominent. People are concerned about the population policy, and hoping for some relaxation of the Only Child Policy (OCP). Many scholars and experts of the population, economy, education and other fields, began to investigate from the family pension, family education and human capital, the demographic dividend. They also pay close attention to the adjustment of the OCP. Among them, most studies are based on the "Quantity-Quality Tradeoff model" to analyze the issue of resource allocation within the household through family decision-making research.Therefore, after viewing the previous papers, we use the date from China Family Panel Studies (CFPS), which was supported by the Peking University "985" project funding, and performed by Peking University of Chinese Social Science Research Center in 2010. We use the CFPS2010 baseline survey data, which is a kind of the microscopic household data. After performing data filtering, we select from the CFPS2010 survey to get the information of the alive, born between 1971 and 1990 individuals, so we get a valid CFPS2010 subsample with 1,434 samples of adult children. After the variance analysis, multivariate linear regression analysis and two-stage least squares (2SLS) analysis, were investigated the relationship between quantity and quality of children in a household, during the implementation of OCP for 20 years in different stages of the population policy.After all, we found that:during different stage of the policy (1971-1977, 1978-1983,1984-1990), an additional child would cause a significant negative effect on the level of education to other family member within the household. In other words, through our analysis of CFPS2010 microscopic family data, we confirmed the assumption of quantity and quality tradeoff.