A Research On The Cost Compensation In Household Higher Education Investment

The paper was based on the background that the higher education in China has been popular in the public, and the families in this country have became the group which was most vulnerable to the impact of the higher education investment risk. After the review of related researches about education cost and education earning at home and aboard, we tried to use the Structural Equation Model to extend the range of empirical research from monetary income to non-monetary income, and then we could get a more comprehensive understanding of cost compensation in household higher education investment.Firstly, after the research direction has been decided, we reorganized the questionnaire data, and we got a total of1778samples including568samples which answered the questionnaire about family. Then we ensured the availability of the data through reliability analysis and missing values analysis. The factor analysis was also used to concentrate variables which would be used in the next step. Secondly, we built the initial model on the theory base of the existing literatures and corrected the model according to the fitting result. The modified model contained monetary income and non-monetary income. The non-monetary income included feedback compensation, working health and spiritual life. The result of empirical research classified by education level, gender, region and so on showed that the impact of education investment in the higher level was small than that in the middle level; female was hard to get non-monetary education earning; the education investment had a bigger influence in the backward areas in China.At last, we provided some policy advices based on the empirical analysis, such as expanding the public’s concept of education earning; providing suitable economic and social environment for realizing the investment income; and promoting education investment in rural areas of China.