Research On The Influence Of Borrowing Constraint On The Decision Of Family Higher Education From The Perspective Of Income Uncertainty

The progress of the quality of human capital is the dominant element of contemporary social and economic growth,higher education investment not only in the macro can promote the growth of social economy,is also the individual income change and an important means of social and economic status.However,since China fully implemented the education cost compensation system,the higher education cost of households has been increasing,and its growth rate has exceeded the household disposable income of the same period.Rising education costs,families in higher education decision making,in order to realize the maximization of the utility of their own education investment,and have to take into account income uncertainty and the risks of borrowing constraints.With the continuous expansion of the gap between the rich and the poor in our country,the rising income uncertainty has caused the family to expand the proportion of saving assets,thus reducing the investment intention of the human capital of middle and low income families.On the other hand,households are often affected by borrowing restrictions when investing in education.Investment in higher education has become one of the important drivers of household savings and lending.The households with lower levels of borrowing constraints will be more likely to invest certain assets in the education of future generations in order to rationally allocate family assets and maximize the utility of the allocation of household assets.Households that are more affected by borrowing constraints will have smooth current consumption.It will increase the incentive for households to prevent savings,and thus is more likely to choose to abandon investment in human capital.At the same time,the factors influencing the decision-making in higher education in the family are not independent of each other.In the process of income uncertainty affecting the decision-making of higher education in the family,whether the borrowing constraint strengthens the negative income uncertainty determines the decision-making of family higher education Effect?In view of this,the paper constructs the theoretical mechanism of household decision-making in higher education under the uncertainty of income and borrowing,and based on the micro data of the 2011 China Household Finance Survey(CHFS)of Southwestern University of Finance and Economics,the Probit of family education decision-making is constructed.The Tobit empirical model is used to examine the impact of borrowing constraints on the decision-making of family higher education in the perspective of income uncertainty.Considering the endogenous problem of the model,this paper uses the instrumental variable method to empirically test the accuracy of the empirical results.Research indicates:(1)Income uncertainty is one of the important factors influencing the decision of higher education in Chinese households.Families face uncertainty,the higher the income,the lower the probability of family members to accept higher education,the investment scale is less,especially by lending way to greatly reduce the possibility of higher education investment;(2)Borrowing constraints are also an important factor affecting the decisions of higher education households.Borrowing constraints exist both reduce the probability of family members to accept higher education,and also reduces the size of the family education investment,and the effect of borrowing constraints of domestic higher education decision-making also has regional differences;(3)Under the impact of negative income uncertainty,borrowing constraints have a significant mediation of family higher education decision-making.effect.With the increase in the level of household borrowing constraints,the negative effect of income uncertainty on family education decisions has been further strengthened.Based on the fact that income uncertainty and borrowing constraints have a profound effect on the decision-making of family education in China,this paper explains the reasons for the differentiation of family education decisions in China from the perspective of income uncertainty and verifies that the level of borrowing constraints will increase further.Expanding the theoretical hypothesis that income uncertainty plays a negative role in the decision-making of higher education in the family.At the same time,based on the existing literature,in order to deeply examine the multi-level impact of income uncertainty and borrowing constraints on family higher education decision-making,this paper will The decision-making of family higher education is divided into whether to accept the dimensions of higher education and investment in education,and it identifies the mediating mechanism of borrowing constraints in the decision-making of family higher education under the perspective of income uncertainty.